Silver Bond opens to subscription for senior residents from July 26 to August 3
The Government will launch the first Silver Bond Series for senior residents aged 65 and above in Hong Kong. The Silver Bond, with a three years tenor, pays out an interest once every six months at a rate linked to the inflation in Hong Kong, subject to a minimum rate of 2%. Principal will be repaid in full at maturity. Unlike the iBond, there will be no secondary market for the Silver Bond. Holders can sell their bonds before maturity, if they wish, to the Government at original price together with unpaid accrued interest.
Silver Bond key facts﹕
- Silver Bond helps senior residents counter inflation and provides steady interest income of at least 2% per year.
- It is not a deposit.
- There is no secondary market for the Silver Bond, thus holders cannot trade the bonds for capital gains.
- The Silver Bond cannot be transferred to another person save for the transfer to the successor under the relevant succession law.
- If you wish to sell the bond before maturity, you may submit an early redemption request to the placing bank and sell the bond back to the Government at original price together with unpaid accrued interest.
- Subscription period from July 26 to August 3, with issue on August 12.
- Over 20 banks are participating in the Silver Bond placement. Some banks may waive the handling fees.
- Senior residents can subscribe via the bank branch or online platform. You cannot ask your family members to subscribe for you. You can only submit one application for the Silver Bond Series. Multiple applications will be rejected in full.
Comparison between Silver Bond and iBond:
|Who can apply?||Holder of a valid Hong Kong identity card and aged 65 and above (i.e. those born in or before 1951)||Holder of a valid Hong Kong identity card|
|Application channels||Placing banks||Placing banks, HKSCC and securities brokers|
|Tenor||3 years||3 years|
|Issuance size||HK$3 billion||HK$10 billion per issue|
|Interest||Paid every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 2 per cent.||Paid every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 1 per cent.|
|Liquidity||No secondary market but holders can sell their bonds back to the Government at original price before maturity.||You can sell the iBond at SEHK or over-the-counter market.|
|Other benefits and risks||Mostly the same|