A bond is a debt security, in which the authorised issuer – company, financial institution, or Government, offers regular or fixed payment of interest in return for the money borrowed by the said issuer. It is for a certain period of time.

How do bonds work?

• When you purchase a bond, the authorised issuer borrows money from you for a fixed period of time.
• This money earns you a predetermined interest rate at regular intervals.
• The principal amount is repaid at the end of the maturity period.

How are bonds different from stock

• Bond holders are lenders whereas stock holders are owners in the firm/organisation/company.
• Bonds have a defined term of maturity while stocks have no fixed time period.

Securities investments are subject to risks. Please read the Offer Document/Prospectus, the issue terms and conditions, carefully before taking any investment decision.