About These Three Hong Kong Retail Bonds
The HKSAR Government Bond Programme issues only three products directly to retail investors: iBond, Silver Bond, and Green Bond. All three carry government credit backing, a minimum subscription of just HK$10,000, and HKD interest income that is exempt from Hong Kong profits tax. Those three shared traits are why they dominate the retail fixed-income market here. Corporate bonds sold through broker platforms can offer higher coupons, but they typically require HK$500,000 to get in — out of reach for most ordinary investors.
iBond — Inflation-Linked Mechanics
iBond pays interest every six months, with the coupon set to the higher of the composite CPI or a 2.0% floor. When inflation rises, the coupon rises with it, giving holders a hedge against loss of purchasing power. When inflation is subdued, the floor steps in as downside protection. Local CPI sits near 1.8% in April 2026, below the floor, so the realistic 12-month coupon is locked at around 2.0%. That is a present fact, not a forecast.
Silver Bond — The Seniors' Premium
The Silver Bond is only available to Hong Kong residents aged 60 or above, and pays quarterly. Its floor is 4.0% — a full two percentage points above iBond. Why the 200 bp gap? Because the policy goal is to subsidise retirement income for seniors, not to let all residents arbitrage the spread. For eligible retirees this is close to a free lunch right now: the floor is well above same-tenor HKD time deposits, and the credit risk is identical to iBond.
Green Bond — HIBOR-Linked With a 4.75% Floor
The Green Bond uses HIBOR as its floating reference with a 4.75% floor, paying semi-annually. In April 2026, 3-month HIBOR is around 4.4% — below the floor — so the binding coupon mechanism is once again the floor. For investors under 60 who still want a meaningful coupon, the Green Bond is currently the highest-yielding retail government bond available. One caveat: the 2023 series matures in 2026, so buyers must think about reinvestment risk. If HIBOR drops sharply by then, the next Green Bond's floor may well come in below 4.75%.
Which One? A Simple Decision Tree
- Aged 60 or above → Silver Bond first. Highest floor, quarterly cash flow, more flexibility.
- Expect a meaningful CPI rise in the next 2–3 years → iBond, because the CPI mechanic will pull the coupon above the floor.
- Under 60, conservative on inflation → Green Bond, since its 4.75% floor is the highest of the three today.
Disclaimer: figures above are April 2026 estimates, not financial advice. Actual coupons are set per HKMA's periodic announcements — verify the latest terms and subscription windows on hkgb.gov.hk before you commit capital. For the full retail bond buying process and HKEX secondary-market trading playbook, read our deep-dive guide: Hong Kong Bond Investing Guide.