Caroline Bishop
Oct 09, 2025 20:30
The Hong Kong Monetary Authority has announced a 4.00% per annum interest rate for the second payment of the Silver Bond Series due 2027, underlining its commitment to stable financial offerings.
The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has announced the annual interest rate for the second interest payment of the Silver Bond Series due 2027. This announcement was made on October 9, 2025, as per the official press release from the HKMA.
Interest Rate Determination
The determination of the interest rate for the Bonds, identified by Issue Number 03GB2710R under the Infrastructure Bond Programme, is based on a comparison of the Floating Rate and the Fixed Rate. The higher of the two rates is selected for the interest payment. As outlined in the Issue Circular dated September 30, 2024, the interest payment is scheduled for October 23, 2025.
Current Rates
On the specified date, the HKMA reported a Floating Rate of 1.47% and a Fixed Rate of 4.00%. Consequently, the interest rate for the second payment has been set at 4.00% per annum, reflecting the higher Fixed Rate. This decision underscores the HKMA’s commitment to offering competitive returns to bondholders.
Economic Context
The Floating Rate is derived from the Composite Consumer Price Index (CPI) year-on-year rates of change, which were recorded as follows: 1.40% in March, 2.00% in April, 1.90% in May, 1.40% in June, 1.00% in July, and 1.10% in August 2025. The arithmetic average of these figures resulted in the 1.47% Floating Rate.
For more details, the official announcement can be accessed on the Hong Kong Monetary Authority website.
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