HSBC launches financing for iBond IPO in Hong Kong

HSBC, one of the placing banks of iBond, has launched financing and preferential offers for the public subscription of iBond in Hong Kong, to support the expected strong demand for iBond among retail investors.


The iBond issued by the HKSAR government is available for subscription at HSBC’s branches, internet banking and phone banking from 9am on June 5 to 2pm on June 13.


HSBC will provide financing for the iBond IPO subscription to HSBC Premier, Advance and SmartVantage customers from 9am on June 5 to 5pm on June 12. Customers can subscribe to the iBond and IPO loan conveniently via HSBC’s internet banking in one go. The loan amount can be up to 90 percent of subscription amount, maximizing customer’s subscription power by up to 10x, up to HKD20 million.


Customers can also enjoy a waiver of 0.15 percent handling fee when they subscribe to iBond through HSBC. Similar to other retail bonds offered by HSBC’s bond trading service, HSBC will waive the safe custody fee, interest collection fee and redemption fee at maturity for iBond. HSBC also does not charge any handling fee for all subsequent buy/sell transactions in the secondary market after its issuance.


Diana Cesar, HSBC’s head of retail banking and wealth management, Hong Kong, said, “As we expect keen interest from retail investors for the new iBond issuance, HSBC has launched its first bond IPO loan for the iBond to meet customers’ strong demand. The IPO loan provides our customers with an option to maximize their participation in iBond investments. We will continue to provide a comprehensive range of wealth management solutions that add value to our customers’ investment activities to help them meet their wealth goals.”


Available for subscription to persons with HKID card, the iBond is an inflation-linked retail bond issued by the Hong Kong government. With a tenor of three years, the iBond’s minimum principal amount is HKD10,000. The iBond will be issued on June 22 and listed on the Hong Kong Stock Exchange on June 25.


For allotted iBond subscribed through the Bank, customers can trade the iBond via HSBC’s online bond trading services from the issue date of the iBond onward. 


28 May 2012


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