Retail Infrastructure Bond 8 Fee Waiver Offers - ICBC (Asia)
Retail Infrastructure Bond 8 Fee Waiver Offers
Infrastructure Bond Programme
HK$20,000,000,000 Retail Infrastructure Bonds Due 2027
| Issuer | The Government of the Hong Kong Special Administrative Region of the People’s Republic of China (“HKSAR Government”) |
| Subscription Period | 9 am on 26 November 2024 (Tuesday) to at 2 pm on 6 December 2024 (Monday) HKSAR Government may decide to close the offer early, or allow more time, without prior notice. HKSAR Government reserves the right to cancel the offer at any time on or before the scheduled issue date. |
| Currency | Hong Kong Dollar |
| Eligibility Requirement | Holder of a valid Hong Kong identity card |
| Subscription Channel | Branches/Internet Banking |
| Issue Date* | 17 December 2024 (Tuesday) |
| Application Price | 100% |
| Subscription Price | The subscription price of the retail infrastructure bonds is equal to the application price. |
| Principal Application Amounts | The minimum principal amount of retail infrastructure bonds you can apply for is HK$10,000. You must apply for a principal amount of retail infrastructure bonds, which is an integral multiple of HK$10,000. |
| Minimum Denomination | HK$10,000 |
| Maximum Principal Allocation Amount | HK$1,000,000 per investor |
| Interest Rate (Coupon) | The interest rate for each interest payment date will be determined and announced on the relevant interest determination date as the higher of:
Per annum, payable every 6 months in arrear. |
| Maturity Date* | 17 December 2027 |
| Handling Fee | 0.15% (Waived)1 |
| Important Information | Full information on the Retail Infrastructure Bond is only available by reading both the electronic version of the issue circular and the programme circular. For more information, please visit Hong Kong Government Bond Programme website www.hkgb.gov.hk. |
*Note that certain circumstances (for example, a “black” rainstorm warning or a tropical cyclone warning signal number 8 or above or an “extreme conditions” announcement in force in Hong Kong) may result in the issue date falling on a later date. HKSAR Government may also change the subscription period and/or the issue date and/or subsequent key dates (including the listing date, interest payment dates, interest determination dates and maturity date). In such case, HKSAR Government will make an announcement on the change of date(s) on www.hkma.gov.hk and on www.hkgb.gov.hk.
Remark 1: Industrial and Commercial Bank of China (Asia) Limited will provide the following 8 fee waiver offers for 2024 Retail Infrastructure Bond including:
- Waiver of Handling Fee
- Sell-Side Brokerage Fee^ (Secondary Market in Securities platform)
- Early Redemption Fee (in the form of Bond)
- Interest Collection Fee
- Maturity Redemption Fee
- Transfer Fee^^ (Switch from Bond to Securities)
- Deposit Transaction Charge
- Custodian Fee^^^
^In the first month of listing (from 18 December 2024 to 17 January 2025)
^^One time only
^^^Only ICBC (Asia) Elite Club Customer, Wise Gold Customer and Private Banking Customer are eligible for the wavier for holding in Securities platform
Investment involves risk. For details, please visit any of our branches. We are delighted to provide you with further information. You may also call our customer service hotline at 2189 5588.
| KEY RISKS OF INVESTING IN RETAIL BONDS |
| Interest Rate Risk: The retail Infrastructure bonds carry a floating rate of interest that is calculated other than by reference to prevailing Hong Kong dollar interest rates. The market value of your retail infrastructure bonds may decrease if the prevailing Hong Kong dollar interest rates increase during the term of the retail infrastructure bonds. |
| Index risk: The retail infrastructure bonds carry a rate of interest that includes a component linked to the Composite Consumer Price Index. The market value of your retail infrastructure bonds may be affected by movements in the index. |
| Liquidity risk: There may not be an active secondary market for your retail infrastructure bonds and it may not be possible to sell your retail infrastructure bonds prior to maturity or the sale price may be lower than the amount you invested. |
| Credit risk: The retail infrastructure bonds are not secured. When you buy retail infrastructure bonds you will be relying on the creditworthiness of HKSAR Government. Adverse changes in the wider economic conditions in Hong Kong and the world and/or the creditworthiness of HKSAR Government may reduce the market value of your retail infrastructure bonds and may affect HKSAR Government’s ability to make payments of principal of and interest on your retail infrastructure bonds. In the worst case scenario, you could lose all of your investment. |
| Intermediary risk: You can only hold retail infrastructure bonds indirectly through certain institutions, whom you will have to rely on to perform a number of functions, including passing on payments of principal of and interest on your retail infrastructure bonds to you and proving your interest in your retail infrastructure bonds. |
| Infrastructure investment risk: The retail infrastructure bonds may not necessarily be a suitable investment if you seek exposure to specific types of infrastructure projects. While the proceeds of the retail infrastructure bonds will be used to fund one or more of the “Eligible Projects” as defined in the Infrastructure Bond Framework, payments under the retail infrastructure bonds are not linked to the performance of the relevant Eligible Project(s). The retail infrastructure bonds are not secured by income from the Eligible Project(s) and you do not have any rights to the Eligible Project(s). HKSAR Government has the sole and absolute discretion to determine the allocation of the proceeds of retail infrastructure bonds to the Eligible Project(s), which may be changed and/or updated from time to time. |
Important Notice
The above risk disclosure statements cannot disclose all the risks involved. Before making investment decision, you should thoroughly study the offering documents, financial reports and relevant risk disclosure statements issued by the issuer of the investment product(s). Further you should consider your own circumstances including financial position, investment experience and objective to ensure the investment is suitable for your particular investment needs and risk tolerance capacity. You should seek independent financial and professional advice before trading or investment. This promotional material does not constitute an offer or solicitation for the purchase or sales of any investment products. This promotional material is issued by Industrial and Commercial Bank of China (Asia) Limited (the “Bank”) and the contents have not been reviewed by Securities and Futures Commission.
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