Infrastructure Bonds 2024 | 3.5% guaranteed base rate available for subscription today, Bank of China “free” Hang Seng “8 free” and draw Check out the latest offers from banks and brokers (continuous updates)

Infrastructure Bonds 2024 – Overview

Infrastructure Retail Bonds issued by the Hong Kong government are available for public subscription starting today, November 26. Investors can expect a guaranteed annual return of 3.5%. With interest rates likely to decrease in Hong Kong, these bonds are seen as a stable investment option over the next three years.

Key Details:

• Subscription Period: November 26, 9 a.m. to December 6, 2 p.m.
• Target Amount: HK$20 billion (max HK$25 billion)
• Lot Size: HK$10,000
• Term: 3 years, with semi-annual dividend payments
• Interest Rate: Minimum 3.5%, linked to local inflation
• Release Date: December 17, 2024
• Listing Date: December 18, 2024, on Hong Kong Stock Exchange
• Eligibility: Available to Hong Kong residents with valid ID cards
• Subscription Method: Through selected banks and brokers
• Maximum Allotment: HK$1 million per person (100 lots)
• Multiple Applications: One application allowed per person

Fees:

• Handling Fee: 0.15% of subscription price, which some banks may waive.
• Dividend Collection Fee: 0.12% on total cash dividends or interest.
• Redemption Fees: May apply at maturity or for early redemption.

Participating Banks:

Included institutions are HSBC, Hang Seng Bank, BOC Hong Kong, Standard Chartered Bank, and others. Specific offers may vary by bank.

Promotions:

Customers of Hang Seng Bank applying online can enter two draws:

• Hang Seng Digital Banking Draw: Chance to win an Apple Store gift voucher worth up to HK$10,000.
• Online Bond Subscription Draw: Chance to win a Klook gift card worth HK$5,000.

Investment Considerations:

Investors should be mindful of the associated fees that may vary between institutions. Understanding these costs will aid in effective investment management. Make sure to carefully read the terms provided by your chosen bank or securities firm before subscribing.