Retail-Bond-2

 

Benefits - Risk

Benefits

• Government bond is a risk-free asset, with the risk of default  close to zero and providing regular income (coupon) to the holder ;
• Customer may receive a higher return when the bond prices go up;
• High liquidity: in case of financial need, Customer can easily convert bond to cash by using a repurchase agreement (Repo) or borrowing money (bond used as collateral) with any bank and resell in the secondary market;
• Issuer risk: since the bonds are issued and guaranteed by the Government and thus the issuer risk is very low;
• Certain cashflow: the bond is essentially a loan with a principal and interest are paid at the  pre-determined points of time to help Customer in building their portfolio easily since cash flows have been clearly identified;
• Periodic coupon payments that customers receive are exempted from income tax.

Risk

• Market yields of the bonds can increase compared to the interest rate at the time of  investment cause the investment value of customers to drop if liquidated;
• Despite Government bonds have a very low level of risk there is still a probability of default of the issuer.

Conditions and Documents

Trading Conditions:

• Customer must have a custody account at Securities firm and a settlement account at Bank;
• Customers must sign principal contract with Sacombank before executing transactions;
• Minimum transaction amount between Sacombank and customers:
  - Individual customers: 100 million vnd/ transaction.
  - Corporate customers: 300 million vnd/transaction.

Transactions processing:

• Customer can contact directly with the Capital Market Department,Sacombank Head Office or indirectly via Sacombank Branches or Transaction Points;
• After finishing the negotiation, Customer is required to sign and send back the Transaction Agreement template to the Internal Payment Center, Sacombank H.O. via fax number (08) 39321447;
• Also, Customer is required to fill the Order Request template (produced by Securities firm where Customer opens a custody account). Sacombank Branches/Transaction points may support if needed);
• Sacombank and the Securities firm will excecute Customer's trade on the Bond Trading System which is managed by Hanoi Stock Exchange on the Order Placement Date.

For further information, please contact any nearest Sacombank Transaction Point or Capital Market Dept : 08 62884121/ 08 62884123

Bonds Information

Calculation tool

Portfolio Revaluation

Reference quoted price