Corporate bonds have different tenors, which are set by the issuing corporations. They also typically offer higher returns to investors. Unlike time deposits, corporate bonds are not insured by PDIC.
Investors can invest a minimum of PHP 500,000.
Corporate bonds pay out fixed semi-annual or quarterly interest. The interest is computed based on the bond’s interest rate and subject to 20% withholding tax.
You will receive interest on a semi-annual or quarterly basis in Peso during the term of the bond.
As these are issued by corporations, corporate bonds are subject to default risk where the company is unable to pay interest or principal. The bond’s market price is also subject to fluctuations based on prevailing economic conditions and the company’s standing. If an investor wishes to sell the bond before maturity, losses may be incurred due to a drop in the bond’s market value.
Corporate bonds are not covered by PDIC Insurance.
Yes, this can be done by selling the corporate bond at the prevailing market price. Note that the price can rise or fall over time, and you may incur gains or losses if you sell before the bond's maturity.
Visit or contact the China Bank branch nearest you to inquire about detailed steps.
Prior to investing, you will be asked to complete a Client Suitability Assessment. This is to determine your risk profile and suitability for investment. The assessment considers your investment knowledge and experience, investment objective, the amount you are willing to invest, how long you can stay in the investment, and how much risk you are prepared to take.