Features
Offshore Bonds
Foreign bonds, also known as overseas bonds, are debt securities issued by foreign governments or large corporations to secure long-term and stable funding. Investors receive periodic interest payments as agreed upon at issuance. Unless stated otherwise, the principal amount specified on the bond coupon is repaid to the investor upon maturity.
Steady Fixed Income: Fixed-rate foreign bonds offer regular interest payments throughout the holding period, provided there is no early redemption or issuer default. This consistent income stream provides financial stability for investors.
Principal Protection at Maturity: If held until maturity and the issuer does not default, investors can recover 100% of the bond’s face value before tax.
Potential for Capital Appreciation: The foreign bond market is vast and highly liquid, allowing investors to sell their holdings before maturity if market conditions are favourable. If the selling price exceeds the purchase cost, investors can secure a capital gain. However, selling at a lower price than the original cost may result in a loss.
The Branch arranges a diverse range of Mutual Funds as approved by the Central Bank of Bahrain for you. We can offer offshore mutual funds to Bahrain residents only if the amount per transaction is USD 100,000 or above.
Benefits of Investing through HDFC Bank Overseas Branch
- Custodial Service
- Loan and leverage against bonds
- Professional support and ease of transaction
- Access to diverse global asset management companies
The Branch arranges a diverse range of Mutual Funds as approved by the Central Bank of Bahrain for you. We can offer offshore mutual funds to Bahrain residents only if the amount per transaction is USD 100,000 or above.