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A Eurobond is a bond issued by governments or firms in foreign currency units other than that of the country or market in which it is issued for the purpose of creating new financial resources. These bonds are usually long-term debt instruments.
A relatively new form of investment instrument in Turkey, 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 negotiated 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 issue.
- The standard value date is the transaction date plus three business days.
- The minimum value of Eurobonds sold by HSBC is 10,000 USD or its equivalent, in increments of 1,000 USD or equivalent.
- In an environment where FX and TRY deposit interest rates are falling, Eurobonds are a high profit investment opportunity for foreign currency investors.
- Although issued as long term, Eurobonds may be cashed in before maturity (at the market conditions of the date of cash-in).
- Eurobonds offer partial tax advantages.
- You may easily invest in Eurobonds through HSBC Bank. You can buy Eurobonds, collect interest at coupon maturity and collect your capital upon bond maturity at HSBC Bank Branches.
Please click for more detailed information on Eurobonds sold through HSBC.
For further information, please call HSBC Bank Telephone Banking at
444 0 111.