Silver bond issue hits new highs on multiple fronts

The government recently announced that applications for its latest batch of silver bonds, aimed at senior citizens, have reached unprecedented levels. A total of 476,703 people applied for the 11th issuance, which will provide a guaranteed annual coupon of 4.25 percent. The subscription amount reached HK$119.3 billion, over double the final issuance amount of HK$55 billion. This over-subscription rate reflects the popularity of silver bonds as a safe and stable investment option for the elderly.

In the 11th batch, 88,422 investors who applied for 12 lots or fewer will receive the full amount they requested, with each lot costing HK$10,000. The remaining 338,281 applicants applied for more than 12 lots. These individuals will first be allocated 12 lots, with a lottery determining those who receive the additional lot. Over 97,000 people are expected to get an extra lot.

Financial Secretary Paul Chan commented on the record-high application and subscription numbers, attributing the success to the bonds' appeal among senior citizens. He also mentioned that the funds raised from this issuance will be used to finance infrastructure projects and improve people's lives. Chan indicated that the government will continue to review the silver bond issuance arrangements based on market conditions and subscription reactions.