Timothy Morano
Sep 04, 2024 03:16
The Hong Kong Financial Authority introduced a 4.00% rate of interest for the fourth cost of the Silver Bond Sequence due 2025.
The Hong Kong Financial Authority (HKMA), performing on behalf of the Hong Kong Particular Administrative Area Authorities, has introduced the annual rate of interest for the fourth curiosity cost of the Silver Bond Sequence due 2025. This fee is a part of the Retail Bond Issuance Programme below the Authorities Bond Programme, in response to the HKMA.
Curiosity Fee Announcement
In accordance with the Difficulty Round dated 9 August 2022, the fourth curiosity cost for the Silver Bond Sequence (Difficulty Quantity 03GB2509R) is scheduled for 16 September 2024. The rate of interest was decided primarily based on the upper of the prevailing Floating Fee and Mounted Fee as of two September 2024.
Decided Charges
On 2 September 2024, the HKMA reported the next charges:
| Floating Fee: | +1.73% |
| Mounted Fee: | +4.00% |
Primarily based on these charges, the rate of interest for the fourth curiosity cost has been set at 4.00% every year.
Context and Implications
The Silver Bond Sequence is a part of Hong Kong’s efforts to offer steady funding choices for its residents, notably the aged. By providing a set rate of interest of 4.00%, the federal government goals to make sure predictable returns amidst fluctuating market circumstances. The floating fee, derived from the Composite Shopper Worth Index, was calculated at 1.73% primarily based on year-on-year modifications from February to July 2024.
The fastened fee of 4.00% displays the federal government’s intention to offer a extra interesting and safe funding to bondholders, particularly in an financial setting the place inflation charges and different financial indicators are in flux.
For extra particulars, go to the Hong Kong Financial Authority.
Picture supply: Shutterstock
