Eurobond

Eurobond

Euronbonds are securities issued and sold internationally in a currency other than the national currency by governments or institutions to obtain foreign funds.

You can perform your purchase-sale transactions through the Online Banking Investments menu, Bills/Bonds step, Foreign Currency Bills/Bonds Purchase-Sale option.

Features

  • It provides the opportunity to obtain returns from international markets by enabling foreign currency based investments.
  • It is an investment instrument that offers attractive interest rates for investors who want to make foreign currency based investments with a long-term outlook.
  • In a climate of downward interest rates, it may generate high returns when sold before maturity. During periods of upward interest rates, the exact opposite may occur.
  • Investors who choose not to wail until maturity and want to obtain returns by trading Eurobonds should correctly analyze the interest rates and their expectations for timing their purchases and sales.
  • Generally, the coupon has a fixed rate, however there are also Eurobonds with variable coupon rates.
  • In purchase-sale transactions before maturity, the prevailing market conditions at the time of liquidation are in effect.
  • While physical delivery is not possible, they are generally issued as bearer instruments.
  • With regards to income tax, the coupon payments are not subject to a withholding tax. Any earnings including those obtained through trading must be declared if they exceed the exemption limit.
  • You can perform your purchase-sale transactions through our branches between the hours of 09:00-16:00, and through Online Banking and 0850 222 0 600 Telephone Banking 24/7, and convert your investments into cash before maturity at the current price.
  • You can also perform your Eurobond purchase-sale transactions through our branches.

Who can take advantage of this product?

  • SME's 
  • Commercial companies 
  • Corporate companies