Hong Kong senior citizens targeted with new ‘Silver Bonds’ offering returns double those of iBonds
Latest government investment product capped at HK$3 billion with three-year tenor
Hong Kong authorities on Friday announced the launch of the city’s first “Silver Bond” for senior citizens aged 65 or above, offering an investment product with a return double that of an iBond.
The minimum denomination is HK$10,000 per bond, which is to be issued for two years as a trial.
Bond holders are to be paid interest once every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 2 per cent.
This means that, even if inflation was lower than 2 per cent, every subscriber would still get a 2 per cent return.
The government launched its first batch of iBonds in 2011, attracting 155,835 applications. In 2013, 525,359 signed up, and last year drew a record-high 597,895 applications.
Silver Bonds will not be listed on any stock exchange and cannot be resold in the secondary market.
While the full maturity period is three years, subscribers who do not wish to wait the entire period to collect on their investment can cash in at any time.
Hong Kong residents who were born on or before December 31, 1951, are eligible to apply for the new bonds between July 26 and August 3 this year at 21 banks across the city.
