Private Sector Eurobonds are traded in international markets and usually denominated in USD or EUR.
Features and Advantages
- They are generally issued with 5-30 years of maturity.
- 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 vary according to the liquidity and transaction volume of the bond.
- The standard value date is the transaction date plus two business days.
- The minimum transaction amount depends on the type of the Private Sector Eurobond.
- Eurobonds offer partial tax advantages.
- You may easily invest in Private Sector Eurobonds through HSBC Bank Branches.