Upcoming HK Green Bonds

[jobin]

New date for Green Bonds announced.
https://www.reuters.com/business/fin...th-2022-04-10/

But my Q is: what is the maximum $ value that can be purchased? This is not stated. The SCMP said the minimum would be HK$10000. And of course, only for PR holders. Minimum monthly return 2.5%.

So, could be useful for some folks.

[shri]

Annual.. Not monthly

[aw451]

It's open to anyone with an HKID, not just PRs

[calmathetic9]

I believe I read it as minimum return is 2.5% per annum and max tied to inflation rate. Also, there is a secondary market for it as well in case you don’t get allocated from the initial offering.

[jobin]

Interest will be paid every six months based on the inflation rate over that half-year period, with a guaranteed minimum payment of 2.5 per cent, higher than the 2 per cent announced in February.
said Paul Chan moo poo.

I gather every individual is restricted to max purchase order, and whether order is successful at all. i told my friend to buy half a million dollars worth of these bonds at HSBC.

[LetsDiscuss]

May be I am wrong, but I am thinking why we need to invest to get just 2.5% annual interest rates when on other hand just send money to India and even make FD can get interest 5%-6%.
Safe and easy.

Anything I am missing here ?

[freeier]

Most guys around here will see the yield as low, but as all the retail bond issued by HK govt till date, the yield is relatively high in contrast to the risk (AA rating prevailing). So even if you think for longer term it does not fit your portfolio, one can usually just buy it and sell it outright for a few % of quick gains.

The first retail ibond, i remember was like 2010 or so, you can subscribe a few 100k and make like 4-5% on issuance.. but subsequently all caught the bug and now the most you can hit will likely be 30-50-80k kind of sizes, depending on how much they going to issue.

[calmathetic9]

Currency risk?
I am assuming the 5-6% rate is for INR?

[traineeinvestor]

Based on previous retail issues by the HKSAR Govt, these should be decent alternative to cash - liquid, likely to be sellable at par or better in the secondary market and offers better interest than cash in the bank.

The only downside is allotments will be miserly.

[ndt]

May be I am wrong, but I am thinking why we need to invest to get just 2.5% annual interest rates when on other hand just send money to India and even make FD can get interest 5%-6%.
Safe and easy.

Anything I am missing here ?

Factor in 3% average currency depreciation and yield will fall in line with equivalent product in other places.. If you are thinking about keeping money in India to avoid currency risk, factor in latest inflation numbers and 5-6% Fixed deposit is actually loosing money, RBI is treading in dangerous water these days by keeping interest lower than inflation rate to spur the growth assuming it will be temporary, worst time to park money in India..