(Bloomberg) -- Hong Kong plans to issue as much as HK$13 billion ($1.7 billion) of inflation-linked bonds and silver bonds to encourage residents to take part in the city's financial development, according to Financial Secretary Paul Chan.
The government issued about HK$60 billion of inflation-linked so-called iBonds from 2011 -- when they were first introduced -- to 2016 and attracted a total of more than 500,000 subscribers, Chan said in a blog post Sunday.
Emerging-market companies and governments have sold a record of about $530 billion in dollar and euro-denominated bonds amounts this year, data compiled by Bloomberg showed. The debtors have taking advantage of global liquidity as central banks try to offset the impact of the pandemic.
- The iBonds will carry a minimum interest rate of 2%, higher than previous similar bonds
- Payments are paid every six months, and the interest rate is linked to the average annual inflation rate of the Hong Kong Composite Consumer Price Index
- Government will also issue silver bonds aimed at seniors aged 65 and above
- The Hong Kong Monetary Authority will hold a press conference at 4 p.m. Monday on the launch of iBonds
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With assistance from Bloomberg
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