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Private Sector Eurobond

Long-term earnings on your foreign currency investments!

Private Sector Eurobonds are traded in international markets and usually denominated in USD or EUR.

Features and Advantages

  • Typical tenor is 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 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.

Tax Regulations

For 2018 tax regulations, please click For 2007 tax regulations, please clickhere.