Silver Bond was first introduced in the FY2016-17, with the stated objective to provide an investment product with steady returns for Hong Kong residents aged 65 or above. We encourage financial institutions to tap into the immense potential of the silver market by introducing a larger spectrum of appropriate products.
Silver Bond is a 3-year bond whose semi-annual interest payments are linked to average annual inflation rate, subject to a minimum interest rate. The principal will be repaid at maturity. Although there is no secondary market for the bond, investors may sell the bond back to the Government before maturity by requesting an early redemption.
More information on Silver Bond is available on the website of the Government Bond Programme.