Hong Kong Monetary Authority Announces 2.00% Interest Rate for iBond Series

Interest
Rate
Determination

The
Hong
Kong
Monetary
Authority
(HKMA),
representing
the
Hong
Kong
Special
Administrative
Region
Government,
has
announced
the
per
annum
interest
rate
for
the
sixth
interest
payment
of
the
iBond
Series
due
in
2024.
According
to
the
HKMA,
the
sixth
interest
payment
will
be
made
on
June
24,
2024,
under
the
terms
outlined
in
the
Issue
Circular
dated
May
12,
2021.

The
interest
rate
for
the
sixth
payment
is
determined
as
the
higher
of
the
prevailing
Floating
Rate
and
Fixed
Rate.
On
June
7,
2024,
these
rates
were
announced
as
follows:

Based
on
this
data,
the
interest
rate
for
the
sixth
interest
payment
is
set
at
2.00%
per
annum.

Background
and
Significance

The
iBond
Series,
identified
by
Issue
Number
03GB2406R
and
Stock
Code
4246,
is
part
of
the
Retail
Bond
Issuance
Programme
under
the
Government
Bond
Programme.
This
bond
series
has
been
significant
for
retail
investors
in
Hong
Kong,
offering
a
secure
investment
avenue
with
stable
returns.

The
original
date
for
the
sixth
interest
payment
was
June
23,
2024;
however,
as
this
date
is
not
a
business
day
in
Hong
Kong,
the
payment
has
been
rescheduled
to
the
next
business
day,
June
24,
2024.
Interest
will
continue
to
accrue
until
the
new
payment
date,
ensuring
investors
receive
the
full
benefit
of
their
investment.

Floating
Rate
Calculation

The
Floating
Rate
for
the
sixth
interest
payment
was
calculated
based
on
the
year-on-year
rates
of
change
in
the
2019/20-based
Composite
Consumer
Price
Index
(CPI)
for
the
specific
months
leading
up
to
April
2024:

This
arithmetic
average
of
1.98%
was
compared
to
the
Fixed
Rate
of
2.00%,
with
the
higher
rate
being
selected
for
the
interest
payment.

Implications
for
Investors

The
determination
of
the
interest
rate
at
2.00%
per
annum
reaffirms
the
stability
and
attractiveness
of
the
iBond
Series
for
investors.
This
decision
ensures
that
bondholders
receive
a
competitive
return,
reflecting
the
government’s
commitment
to
providing
secure
investment
opportunities.

The
HKMA’s
announcement
is
part
of
a
broader
effort
to
maintain
transparency
and
predictability
in
the
financial
markets,
crucial
for
investor
confidence
and
market
stability.

For
more
detailed
information,
visit
the

official
source.

Image
source:
Shutterstock

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