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Hong Kong to raise up to HK$20 billion (US$2.6 billion) in latest round of iBonds
- Subscriptions for the eighth series of inflation-linked government debt to open on June 1, close on June 11
- iBonds will pay a minimum interest rate of 2 per cent every six months
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Hong Kong plans to issue up to HK$20 billion (US$2.6 billion) of inflation-linked government debt, known as iBonds, beginning June 1, according to the Hong Kong Monetary Authority (HKMA).
The iBonds, the eighth series issued since 2011, will make an interest payment every six months based on the average rate of the consumer price index over that half-year period, with a guaranteed minimum payment of 2 per cent.
That is in line with the last series of iBonds issued in November and double the minimum guaranteed rate for the prior series issued in 2016. The city issued HK$15 billion worth of three-year bonds in November.
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In its latest offering, the city’s government plans to issue HK$15 billion worth of bonds, but could increase that to HK$20 billion depending on popularity, making it the biggest iBond offering to date, according to Clara Chan, the HKMA’s executive director for monetary management.
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Hong Kong identity card holders will be able to subscribe in HK$10,000 increments at placing banks, securities brokers or the Hong Kong Securities Clearing Company beginning at 9am on June 1, according to the city’s de facto central bank. The subscription period will run through 2pm on June 11, with the bonds being issued on June 23 and listed on the Hong Kong stock exchange the next day.
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