The Hong Kong Special Administrative Region government on Thursday announced that it will issue a new batch of Silver Bonds totaling at least HK$50 billion ($6.37 billion) and start accepting subscription applications on Aug 21.
This batch of Silver Bonds is fixed with interest at a rate linked to the city’s inflation, and subject to a minimum of 4.25 percent. Each unit is offered at HK$10,000, and has a three-year tenor. Interest will be paid semi-annually, while holders may sell their bonds to the government any time before maturity at par with accrued but unpaid interest.
The government said subscription will be available to any Hong Kong resident who will be 60 in 2027 or earlier, with each person being allocated at most 100 units of bonds — equivalent to around HK$1 million. Depending on market reaction, the target issuance size may be raised from HK$50 billion to a maximum of HK$55 billion, the government added.
Financial Secretary Paul Chan Mo-po said the bond offers older adults a safe, steady and low-risk investment option, while encouraging the financial sector to tap into the business potential of the silver economy.
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“Issued under the Infrastructure Bond Programme, proceeds from this batch of Silver Bonds will be used to fund public-works projects to push ahead Hong Kong's infrastructure and urban development, enhancing people's quality of life while enabling citizens to participate in and benefit from the city's development,” Chan said in a statement.
At a news conference on Thursday, Christopher Hui Ching-yu, secretary for financial services and the Treasury, said the government’s Silver Bonds have received widespread recognition and acceptance among the city’s residents.
Regarding how the minimum interest rate of 4.25 percent was set, Hui said it was referred to similar products in the local market, adding that the market rate for a 12-month time deposit is currently 2 to 3 percent.
“Given the fact that it is a three-year-term bond, we are of the view that our product is sufficiently attractive for the segment that we are targeting,” he added.
This was the HKSAR government’s latest Silver Bond issuance plan in nearly a year, as well as the 11th batch of this type of product since 2016.
The last issuance of Silver Bonds was in October 2025, which was similarly offered at HK$10,000 per unit and subject to a minimum interest rate of 3.85 percent, received 371,821 valid applications for a total of more than HK$98.2 billion in bond principal, bringing the final issuance value to HK$55 billion. All valid applications received were allocated bonds, with a maximum of 17 units.
The new batch of bonds will be officially issued on Sept 15, after the subscription period ends at 2 pm on Sept 4.
Contact the writer at gabylin@chinadailyhk.com
