Government announces subscription and allocation results of iBond

The Government announced today (June 16) the subscription and allocation results of the sixth inflation-linked retail bond, or iBond, issued under the retail part of the Government Bond Programme.

According to the subscription information submitted by Placing Banks and the Hong Kong Securities Clearing Company Limited (HKSCC), as at the close of the subscription period at 2 pm on June 8, 2016, a total of 507,978 valid applications were received for a total of HK$22,526,150,000 in principal amount of bonds.

A breakdown of valid applications is as follows –

The final issue amount is HK$10 billion.  Allocation is conducted in accordance with the mechanism set out in the Issue Circular dated May 19, 2016.  The valid applications received have been allocated different amounts of bonds up to a maximum of three units.  There are a total of 166,617 applications for two or fewer units.  They will be allocated the full amounts applied for.  The remaining 341,361 valid applications (i.e. those applying for more than two units) will be allocated two units each and then entered into a ballot.  Of these applications, 7,211 will be allocated one additional unit.

The iBond will be issued on June 20, 2016 and listed on the Stock Exchange of Hong Kong on June 21, 2016.  Notifications on individual allocation results, applicable subscription moneys and amounts of any refund of application moneys will be made by the Placing Banks and the HKSCC in accordance with the schedule set out in the Issue Circular.

16 June 2016