Of interest:
Secretary for Financial Services & the Treasury Prof KC Chan (centre) says the issuance of the iBond promotes the further development of the retail bond market.
iBond subscription to start
July 05, 2011
Secretary for Financial Services & the Treasury Prof KC Chan today announced the launch of the inflation-linked retail bond, or iBond, for subscription by Hong Kong residents beginning later this month. The iBond will be issued under the retail section of the government bond programme.
Speaking at a press conference, Prof Chan said the issuance of the iBond promotes the further development of the retail bond market by enhancing retail investors’ awareness and interest in bond investment.
“The maximum issuance size of the iBond will be $10 billion. The iBond will have a tenor of three years and bond holders will be paid interest once every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 1%,” he said.
The denomination of the iBond is $10,000. The subscription period will start at 9am on July 11 and end at 2pm on July 19. Hong Kong residents can apply for the iBond through any of the 20 placing banks, securities brokers or the Hong Kong Securities Clearing Company.
Different placing institutions can charge different processing fees for application, yet the Bank of China (HK) and HSBC, as joint lead managers, will waive all fees in relation to applying and holding iBonds.
The iBond will be issued on July 28 and listed on the Stock Exchange of Hong Kong the following day.
Click
here for details of the offering terms and subscription arrangements.
