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Corporate bonds

Corporate bonds

Debt securities issued by companies

  • The investment with maturity and return known to you in advance
  • You can invest in litas or in a foreign currency

These debt securities in litas or in a different currency are issued by Lithuanian and foreign companies. Holders of corporate bonds are paid interest by the set deadlines and are repaid the face value of the bond on the redemption date. Corporate bonds are usually more risky and therefore more profitable than bonds issued by the Government of the Republic of Lithuania.

Information about issues of corporate bonds

No corporate bonds are offered at the moment.

For more information about corporate bonds, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell corporate bonds without waiting for the set redemption date, but in such case their price depends on the situation on the market, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in corporate bonds may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

By investing in corporate bonds investors accept the issuer’s (company’s) credit risk, i.e. the risk that the company which issued the bonds will not settle accounts with investors under the set terms and conditions. It should be noted that the issuer’s credit risk is not insured, i.e. the company’s obligation to buy out the bonds is not insured with state institution Indėlių ir investicijų draudimas.

This content cannot be construed as personal recommendation or order to invest and may not constitute any basis or part of any subsequent transaction. Before you decide to invest in corporate bonds, you should review issue prospectuses of bonds and all related risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

Types, maturity and interest

The maturity of corporate bonds varies from several months to several years. Based on the type of bonds, interest may be paid out in either of the two ways: periodically or on the redemption date.

  Coupon bonds Discounted bonds
Interest Interest on these bonds is paid in periodic coupon payments, usually once per year.

On the redemption date of bonds holders are repaid their face value and the last coupon.

Interest on discounted bonds is included in the face value of bonds and is paid out to investors on the set redemption date.

Before you buy corporate bonds, read the terms carefully. For instance, the company which issued bonds may be granted the right to buy out the bonds while investors to demand that the company buys out the bonds prior to the set redemption date.

 

For more information about corporate bonds, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell corporate bonds without waiting for the set redemption date, but in such case their price depends on the situation on the market, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in corporate bonds may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

By investing in corporate bonds investors accept the issuer’s (company’s) credit risk, i.e. the risk that the company which issued the bonds will not settle accounts with investors under the set terms and conditions. It should be noted that the issuer’s credit risk is not insured, i.e. the company’s obligation to buy out the bonds is not insured with state institution Indėlių ir investicijų draudimas.

This content cannot be construed as personal recommendation or order to invest and may not constitute any basis or part of any subsequent transaction. Before you decide to invest in corporate bonds, you should review issue prospectuses of bonds and all related risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

Issuer credit risk

By investing in corporate bonds, you accept the issuer’s (company’s) credit risk, i.e. the risk that the company which issued the bonds will not settle accounts with you under the set terms and conditions. It should be noted that this credit risk is not insured, i.e. the company’s obligation to buy out the bonds is not insured with the state institution Indėlių ir investicijų draudimas.

Market risk

The price for corporate bonds sold on the secondary market may be either higher or lower than their purchase price, so investors who sell bonds prior to redemption date may receive lower return on investment than on the redemption date or even incur losses. The price for corporate bonds on the secondary market depends on changes to interest rates, the term to the redemption date, supply and demand of bonds on the market and other factors.

Interest risk

Changes to the interest rates on the market may alter the value of investments in these debt securities. As interest rates on the market increase, the value of investment in debt securities decreases. Investors investing in long-term debt securities take a higher risk than when they invest in short-term debt securities.

Reinvestment risk

As market interest rates decline, it may be impossible to reinvest the interest (coupon) earned periodically from fixed return securities in financial instruments that yield at least the same rate of return. For this reason there is a risk to receive a lower return on investment in these securities.

Currency risk

When you invest in corporate bonds in a foreign currency, you take the risk that the actual value of these securities may decrease due to changes in exchange rates.

Tax risk

When you invest in bonds of foreign companies, you take the risk that any income received from investing or trading in such bonds may be taxed not only in your home country, but also in the country of the issuer of the bonds. AB SEB bankas is not responsible for taxation of income paid out for the owned and/or sold bonds of foreign companies (coupons, etc.) and does not offer any withholding tax recovery service to customers.

Description of risks related to financial instruments (PDF, 150 KB, in Lithuanian)

For more information about corporate bonds, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell corporate bonds without waiting for the set redemption date, but in such case their price depends on the situation on the market, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in corporate bonds may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

By investing in corporate bonds investors accept the issuer’s (company’s) credit risk, i.e. the risk that the company which issued the bonds will not settle accounts with investors under the set terms and conditions. It should be noted that the issuer’s credit risk is not insured, i.e. the company’s obligation to buy out the bonds is not insured with state institution Indėlių ir investicijų draudimas.

This content cannot be construed as personal recommendation or order to invest and may not constitute any basis or part of any subsequent transaction. Before you decide to invest in corporate bonds, you should review issue prospectuses of bonds and all related risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

For more information about corporate bonds, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell corporate bonds without waiting for the set redemption date, but in such case their price depends on the situation on the market, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in corporate bonds may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

By investing in corporate bonds investors accept the issuer’s (company’s) credit risk, i.e. the risk that the company which issued the bonds will not settle accounts with investors under the set terms and conditions. It should be noted that the issuer’s credit risk is not insured, i.e. the company’s obligation to buy out the bonds is not insured with state institution Indėlių ir investicijų draudimas.

This content cannot be construed as personal recommendation or order to invest and may not constitute any basis or part of any subsequent transaction. Before you decide to invest in corporate bonds, you should review issue prospectuses of bonds and all related risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

You can buy and sell corporate bonds in either of the two ways:

When you buy corporate bonds on the secondary market, custody fees apply.

Securities services fees and commission charges (150 KB)

 

For more information about corporate bonds, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell corporate bonds without waiting for the set redemption date, but in such case their price depends on the situation on the market, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in corporate bonds may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

By investing in corporate bonds investors accept the issuer’s (company’s) credit risk, i.e. the risk that the company which issued the bonds will not settle accounts with investors under the set terms and conditions. It should be noted that the issuer’s credit risk is not insured, i.e. the company’s obligation to buy out the bonds is not insured with state institution Indėlių ir investicijų draudimas.

This content cannot be construed as personal recommendation or order to invest and may not constitute any basis or part of any subsequent transaction. Before you decide to invest in corporate bonds, you should review issue prospectuses of bonds and all related risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

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