“Eurobonds” are long-term (usually from 4 to 30 years) bonds or debt securities issued simultaneously to international markets/investors by the governments or companies for the purpose of creating financial resources
- It is a foreign currency denominated investment product.
- They can be issued in the currency of another country other than the currency of the issuing country.
- Eurobonds are bearer instruments however physical delivery is not possible.
- Coupon payments are made in the same currency as that of the Eurobond on issue.
- They are are long-term bonds with coupon payments. Fixed coupon payments of USD denominated bonds are made semi-annually whereas fixed coupon payments of EURO denominated bonds are made annually.
- The standard value date is transaction date plus 3 working days.
- There is no stoppage on Eurobond coupon payments.
- They are subject to the law of the country in which Eurobonds are sold rather than that of the issuer country.
- Since they are simultaneously traded in the international markets, they are subject to price fluctuations depending on the political and economic developments. For this reason, when they are sold before maturity, a loss of principal risk may occur.
You may buy Eurobond with your foreign currency savings; thereby you can earn higher income as well as ensure a continuous cash flow through the coupon payments.
You can conduct your Eurobond transactions from TEB Internet Branch, 0850 200 0 666 TEB Phone Branch and through TEB Branches that are also open at lunch hours.