Ted Hisokawa
Aug 04, 2026 09:01
Hong Kong Monetary Authority announces 5.00% interest rate for the sixth and final payment of the 2026 Silver Bond Series, highlighting inflation-linked returns.
The Hong Kong Monetary Authority (HKMA) has set the annual interest rate for the sixth and final payment of the Silver Bond Series due 2026 (Issue No. 03GB2608R) at 5.00%. The announcement, made on August 4, 2026, confirms that bondholders will receive the fixed minimum rate over the floating rate, which was calculated at 1.70% based on recent inflation data. The payment is scheduled for August 18, 2026, marking the maturity of the bond.
Under the Retail Bond Issuance Programme, the Silver Bond Series offers semi-annual interest payments determined as the higher of a fixed minimum rate (5.00% for this issue) or a floating rate linked to the Composite Consumer Price Index (CPI). Recent CPI data from January to June 2026 showed annualized inflation averaging 1.70%, well below the fixed minimum rate, ensuring holders benefit from the guaranteed return.
This 5.00% rate has been a consistent feature of the due-2026 Silver Bond Series since its issuance, with all previous payments similarly hitting the minimum threshold. For example, the fifth interest payment, announced in February 2026 and paid on February 20, also carried a 5.00% interest rate, reflecting the program’s design to provide stable, inflation-protected returns for Hong Kong retail investors.
The bond issue, totaling HK$55 billion, was aimed at providing senior citizens aged 60 and above with a reliable income stream in a low-yield environment. While Silver Bonds are not traded on secondary markets, they have gained popularity for their inflation-linked structure and government backing. Payments are made every six months, with the final principal repayment scheduled at maturity.
For context, the Silver Bond programme is part of the Hong Kong Special Administrative Region Government Bond Programme, which seeks to promote the development of the local bond market while offering safe investment vehicles to retail investors. The due-2026 series debuted with an initial annualized interest payment of 5.00% and has maintained this rate across all six scheduled payments.
Looking ahead, the August 18 payment will conclude this specific bond series, with bondholders receiving both their final interest and principal repayment. For those seeking similar products, the HKMA has already issued subsequent Silver Bond series with similar inflation-linked terms, such as the series due 2028.
In a year marked by moderate inflation and global uncertainty, the consistent 5.00% return on the 2026 Silver Bond Series highlights the program’s appeal for conservative investors prioritizing income stability over market volatility.
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