Third iBond issuance unveiled

Maximum issuance size is at $10b.

According to a report, secretary for Financial Services & the Treasury Prof KC Chan today announced the third inflation-linked retail bond, or iBond, available for subscription by Hong Kong residents starting June 4.

Speaking at a press conference, Prof Chan said local residents responded well to the first two iBond issuances in July 2011 and June 2012.

The third issuance will enhance awareness of and interest in bonds, he said.

The maximum issuance size of the third iBond will be $10 billion. It 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%. The iBond's denomination is $10,000.

The subscription period starts at 9am on June 4 and ends at 2pm on June 13. Hong Kong residents can apply through any of the placing banks, securities brokers or the Hong Kong Securities Clearing Company.

The iBond will be issued on June 24 and listed on the Hong Kong Stock Exchange Kong on June 25.