What are iBonds?
● The inflation-linked retail bond, also known as iBond is rolled out by the
HKSAR Government under the retail bond issuance programme of the
Government Bond Programme.
● The first series of iBond was issued in July, 2011.
● iBond has a minimum denomination of HK$10,000 and a term of three years.
● Its half-yearly interest payments are linked to the average year-on-year
inflation measured by the Composite Consumer Price Index (CPI), subject to
a minimum interest rate, which is 2% per annum for the iBond issued in 2020,
compare to the previous 1%;
● HKSAR Government will repay 100% of the principal amount at maturity; and
It can also be traded on the Stock Exchange of Hong Kong Ltd (SEHK).