Investments in index-linked bonds are similar to investments in equities. However, unlike direct investments in equities or investment funds, here the investor has the option of investing in bonds with limited risk or to pay a risk premium and possibly to earn more.
By choosing the bond offer with a limited risk, you will receive the nominal value of the bond even if the index development has been negative. Conversely, if you choose the option to pay a premium, the possibility of potential profit increases.
- Opportunity for high potential return.
- Safety that at the end of the term you will recover the nominal value of the bonds.
- Possibility to sell the bonds before their maturity; option to use overdraft against the bond value with favourable interest rate.
Nordea offers a number of index-linked bond programs. Different investment strategies provide more new and attractive investment opportunities. For instance, potential return of bonds can be linked to a particular index or basket of securities.
Usually, the maturity of index-linked bonds is 5 years. If you need the money sooner, you can sell the bonds before their maturity date for their current market value.
You can purchase one or more index-linked bonds choosing from one or more present offers.
To purchase bonds:
- Visit any Nordea Customer Service Unit.
- Open securities account.
- Select any of the available bond offers.
- Fill out the application for bond purchase in Nordea Netbank under the section Correspondence or at any Nordea Customer Service Unit.
Opening of securities account and bond purchases are free of commission fee.
If you want to sell the Index-linked Bonds you must inform the bank by submitting an application:
- In Netbank section Correspondence on business days before 2.30 pm.
- At Nordea Customer Service Units on business days before 15:00.
Applications submitted on holidays, public holidays or after the specified time will be regarded as received on the next business day. Payments for selling the bonds will take place after 3 business days following the reception of the application.
Bond buyback price is fixed at the end of the trading day according to the current value of the link, the remaining time until bond maturity, financial costs of the emitent and the overall market situation. The buyback prices of the previous working day are available on the next day under the tab Index-linked Bonds Program Archive. Find out the exact price by calling to the Contact Centre at +371 67 096 096 or by visiting any Nordea Customer Service Unit.
Maturity date of index-linked bonds is specified at the moment of bond issue. In case of selling the bonds before maturity, their price will depend on market situation and index developments. The bond price can be lower or higher than at the moment of their purchase.