Silver Bond fourth interest payment set at 4.00 percent
The annual interest rate for the fourth payment of the Silver Bond series due 2027 is set at 4.00 percent. The Hong Kong Monetary Authority scheduled disbursement for October 23, 2026, under the Infrastructure Bond Programme.
Floating formula yields to fixed floor
The Hong Kong Monetary Authority determined the fourth interest payment for the Silver Bond Series due 2027 at 4.00 percent per annum.
Under the governing framework, the coupon equals whichever is higher between the prevailing floating rate and the fixed rate.
The floating rate was established using the arithmetic average of six consecutive monthly year-on-year changes in the Composite Consumer Price Index.
These figures came in at 1.70 percent for March, 1.70 percent for April, 2.00 percent for May, 2.00 percent for June, 1.70 percent for July, and 1.70 percent for August 2026.
This yielded an average floating rate of 1.80 percent, well below the 4.00 percent fixed rate benchmark applied for the payout.
Clear timetable for public borrowing
The bonds, carrying issue number 03GB2710R, were issued under the Hong Kong Special Administrative Region Government Infrastructure Bond Programme, with the monetary authority serving as representative.
Under the timetable established in the issue circular dated September 30, 2024, the interest rate was scheduled for determination and release on October 8, 2026.
Settlement of this fourth scheduled payment will proceed on October 23, 2026, executing the terms set out in the original circular.
Protected payouts, muted prices
Routine debt administration defines this procedural update rather than broader monetary policy direction.
A guaranteed four percent rate insulates bondholders effectively as local inflation remains contained below two percent.
The mechanism fulfills its protective purpose while creating zero ripples across wholesale financial markets.