Ted Hisokawa Aug 04, 2026 09:01
Hong Kong Financial Authority pronounces 5.00% rate of interest for the sixth and last cost of the 2026 Silver Bond Collection, highlighting inflation-linked returns.
The Hong Kong Financial Authority (HKMA) has set the annual rate of interest for the sixth and last cost of the Silver Bond Collection due 2026 (Problem No. 03GB2608R) at 5.00%. The announcement, made on August 4, 2026, confirms that bondholders will obtain the fastened minimal charge over the floating charge, which was calculated at 1.70% based mostly on latest inflation information. The cost is scheduled for August 18, 2026, marking the maturity of the bond.
Below the Retail Bond Issuance Programme, the Silver Bond Collection presents semi-annual curiosity funds decided as the upper of a set minimal charge (5.00% for this concern) or a floating charge linked to the Composite Shopper Worth Index (CPI). Current CPI information from January to June 2026 confirmed annualized inflation averaging 1.70%, nicely beneath the fastened minimal charge, guaranteeing holders profit from the assured return.
This 5.00% charge has been a constant function of the due-2026 Silver Bond Collection since its issuance, with all earlier funds equally hitting the minimal threshold. For instance, the fifth curiosity cost, introduced in February 2026 and paid on February 20, additionally carried a 5.00% rate of interest, reflecting this system’s design to offer steady, inflation-protected returns for Hong Kong retail traders.
The bond concern, totaling HK$55 billion, was geared toward offering senior residents aged 60 and above with a dependable earnings stream in a low-yield surroundings. Whereas Silver Bonds aren’t traded on secondary markets, they’ve gained reputation for his or her inflation-linked construction and authorities backing. Funds are made each six months, with the ultimate principal compensation scheduled at maturity.
For context, the Silver Bond programme is a part of the Hong Kong Particular Administrative Area Authorities Bond Programme, which seeks to advertise the event of the native bond market whereas providing secure funding automobiles to retail traders. The due-2026 sequence debuted with an preliminary annualized curiosity cost of 5.00% and has maintained this charge throughout all six scheduled funds.
Trying forward, the August 18 cost will conclude this particular bond sequence, with bondholders receiving each their last curiosity and principal compensation. For these searching for related merchandise, the HKMA has already issued subsequent Silver Bond sequence with related inflation-linked phrases, such because the sequence due 2028.
In a yr marked by reasonable inflation and world uncertainty, the constant 5.00% return on the 2026 Silver Bond Collection highlights this system’s attraction for conservative traders prioritizing earnings stability over market volatility.
Picture supply: Shutterstock
