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Retail Bond Issuance Programme - iBond Series
iBond Series HK$10,000,000,000 (subject to adjustment to a maximum issue amount of HK$15,000,000,000)Retail Bonds Due 2023
| Issuer | The Government of the Hong Kong Special Administrative Region of the People’s Republic of China (“HKSAR Government”) |
| Subscription period | 9am on 23 October 2020 (Friday) to at 2pm on 5 November 2020 (Thursday) (Bond Platform) 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 and non U.S. person (as defined in Regulation S under the Securities Act) or resident of Canada. |
| Subscription Channel | Branches |
| Issue Date * | 16 November 2020 (Monday) |
| Listing Date | 17 November 2020 (Tuesday) |
| Application Price | 100% |
| Subscription Price | The subscription price of the retail bonds is equal to the application price. |
| Principal application amounts | The minimum principal amount of retail bonds you can apply for is HK$10,000. You must apply for a principal amount of retail bonds, which is an integral multiple of HK$10,000. |
| Minimum denomination | HK$ 10,000 |
| 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: (i)The floating rate, being the arithmetic average of the year-on-year rates of change in the Composite Consumer Price Index compiled and published by the Census and Statistics Department of HKSAR Government based on the results of the most recent Household Expenditure Survey at the relevant interest determination date(currently being the 2014/15-based Composite Consumer Price Index) for the 6 most recent preceding months, rounded to the nearest two decimal places; and (ii)The fixed rate of 2.00%, Per annum, payable every 6 months in arrear. |
| Maturity date | 16 November 2023 |
| Handling fee | 0.15% (Waived)1 |
| Important information | Full information on HKSAR Government and the iBond Series of retail bonds is only available by reading both the issue circular and programme circular. For more information, please visit Hong Kong Government Bond Programme website http://www.hkgb.gov.hk |
| *Note that certain circumstances (for example, a “black” rainstorm warning or a tropical cyclone warning signal number 8 or above in force in Hong Kong) may result in the issue date falling on a later date. |
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1Industrial and Commercial Bank of China (Asia) Limited will provide the following offers for iBond 2020 including: Waiver of 0.15% Handling Fee, Buy-Side Brokerage Fee (Secondary Market in Securities platform^ ), Sell-Side Brokerage Fee (Secondary Market in Securities platform^), Early Redemption Fee, Interest Collection Fee, Maturity Redemption Fee, Transfer Fee^^, Deposit Transaction Charge and Custodian Fee^^^.
^In the first month of listing (from 17 November 2020 to 16 December 2020)
^^One time only
^^^Only Elite Club Customer and Private Banking Customer is eligible for the wavier for holding in Securities platform
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 218 95588.
| KEY RISKS OF INVESTING IN RETAIL BONDS |
| Interest Rate Risk: The retail 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 bonds may decrease if the prevailing Hong Kong dollar interest rates increase during the term of the retail bonds. |
| Index risk: The retail bonds carry a rate of interest that includes a component linked to the Composite Consumer Price Index. The market value of your retail bonds may be affected by movements in the index. |
| Liquidity risk: There may not be an active secondary market for your retail bonds and it may not be possible to sell your retail bonds prior to maturity or the sale price may be lower than the amount you have invested. |
| Credit risk: The retail bonds are not secured. When you buy retail 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 bonds and may affect HKSAR Government’s ability to make payments of principal of and interest on your retail bonds. In the worst case scenario, you could lose all of your investment. |
| Intermediary risk: You can only hold retail 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 retail bonds to you and proving your interest in your retail bonds. |