OffShore Bonds for Gift City

About 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.

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.

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.

Please get in touch with your Relationship manager or write to us at our email to know more: ibugiftcity@hdfc.bank.in.

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.
     

What is the benefit of investing in GIFT City?

GIFT City provides an all-encompassing service hub for global finances and information technology enterprises. As an investor, investing in GIFT City grants you access to global investments. You can open Call Accounts and Foreign Currency Term Deposits, invests in global equities and Bonds for GIFT City, and avail of loan facilities and treasury solutions, among others. Additionally, investors can enjoy tax benefits such as capital gains exemption for certain sales, GST, STT, CTT and stamp duty.

Reference:
https://www.giftgujarat.in/business/ifsc