Long-term earnings on your foreign currency investments!
A Eurobond is a bond issued offshore by governments or corporates denominated in a currency other than that of the issuers country. Eurobonds are usually long-term debt instruments.
Eurobonds are typically denominated in US Dollars (USD). Euro, Japanese Yen, Swiss Francs and other currency denominated Eurobonds are also available.
Features and Advantages
- Typical maturities are 5-30 years.
- The coupon interest may be fixed or floating. Payments may be annual or semi-annual.
- Although issued as long term, Eurobonds may be sold before maturity; the market conditions at the date of cash-in are taken the as basis for the sale price. Higher than expected returns can be obtained in a market where interest rates decline, but the reverse is also possible.
- When sold, the bonds are made out to the bearer; however, physical delivery to the buyer in reality is not possible.
- The difference between buy-sell quotations varies according to the liquidity and transaction volume of the bond.
- The standard value date is the transaction date plus three business days.
- The minimum value of Eurobonds sold by HSBC is 1,000 USD/EUR and its multiples.
- In an environment where FX and TRY deposit interest rates are falling, Eurobonds are a high profit investment opportunity for foreign currency investors.
- Eurobonds offer partial tax advantages.
- You may easily invest in Eurobonds through HSBC Bank Branches, HSBC Bank Retail Internet Banking and HSBC Bank Telephone Banking.
For further information, please call HSBC Bank Telephone Banking at 0850 211 0 111.