Bonds

Bonds

Flexibility to choose from bonds of various currencies and tenures to diversify your portfolio and at the same time enjoy a regular stream of income from your investments in the bond market.

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Everything you need to know

Bonds are debt instruments issued by governments and corporations and can be denominated in Singapore Dollar or any foreign currency.

Benefits of Bond Investments offered by Citi:

  • Wide selection of quality bonds
  • Our bonds are issued by reputable institutions in bond markets worldwide with various tenors and currencies to best meet your investment objectives.
  • More than 1,500 bonds available to trade.
  • Custody Services
  • When you invest in a bond with Citibank, you do not need to worry about the custody of the bond. Instead, Citibank will keep the bond for you and any coupon received will be credited automatically into your account.
  • Potential capital gain
  • Enjoy capital appreciation if you sell the Bond when the price has appreciated (Please note prices may also decline).

Already have an account with us?

For Singapore clients, simply contact your Relationship Manager or our CitiPhone hotline at +65 6225 5225.

For International Personal Banking clients, simply contact your Relationship Manager or our CitiPhone Banking at +65 6224 5757.

 

Don’t have a Citibank account yet?

For Singapore Clients, begin your wealth journey here.

For International Personal Bank Clients, apply now.

Note: Wealth management privileges, services, products and pricing offered may vary depending on your country of residence and type of account

Note: Only available for International Personal Bank customers

How to start trading eBonds on the Citi Mobile® App

Getting Started with eBonds

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Login to Citi Mobile® App and click on “Wealth”

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Tap on “Bonds”, 

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Tap on “Buy Bonds”

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Tap on “All” to view all

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Choose your funding account and investment amount

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Review your order

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Trade successfully placed

Invest with eBonds at your convenience

Be it enjoying a regular stream of income, diversifying your investment portfolio, or having a myriad of bonds in various tenors and currencies to choose from, eBonds which is now available on the Citi Mobile® App, is one of the investment tools to establishing and managing your wealth on the move. Investing has never been more seamless and convenient.

Grow your savings

More than 1,500 bonds

Choose from different types of bonds with various tenors and currencies

Low starting amount

Low starting amount

Minimum bond investment amount as low as US$10,000 or equivalent

Low starting amount

Regular Income

Earn regular income through coupon payment

  • At Citibank, we make available to you a wide selection of quality bonds issued by reputable institutions in bond markets worldwide. You can choose from bonds of various tenors and currencies to best meet your investment objectives.
  • When you invest in a bond with Citibank, you do not need to worry about the custody of the bond. Instead, Citibank will keep the bond for you and any coupon received will be credited automatically into your account.

  • Bonds are debts issued by governments of countries (e.g. USA, Australia, Germany) and large corporations (e.g. Citigroup, IBM, Toyota) to raise funds to finance projects or businesses.
  • Bonds are instruments that can provide both short-term and long-term returns.
  • Bond tenors can range from as short as 1 month to 30 years or even longer

When you invest in a bond, you are actually lending to the issuer of that bond and this will provide you with a regular income through the periodic coupon payments and the repayment of your principal at maturity*.

As most bonds are tradable securities, you can either hold a bond until maturity or sell it before maturity at the prevailing bond market price. If you sell the bond at a price higher than what you paid, you can make a capital gain. Likewise, you could also suffer a loss if you sell at a lower price.

*Please note that repayment of nominal amount is subjected to the credit risk of the issuer

Here’s an example of how you can earn returns when you purchase a bond and invest in the bond market through Citibank International Personal Bank. Supposed you bought a nominal amount or par value of US$250,000 of Citigroup bond at market price of US$100 in 2022. This bond pays a fixed coupon of 5.8% p.a. and matures on March 16, 2025.

This bond pays coupon twice a year. This means that each year on March 16 and September 16, you will be receiving fixed coupon payment of US$7,250 [(5.8% x $250,000)/2]. At maturity on March 16, 2025 the bond issuer, Citigroup, will pay you the final interest of US$7,250 + the principal of US$250,000.

Should you decide to sell the above bond on March 16, 2023 (before maturity), 2 scenarios could occur:

Suppose the market price of the bond is higher than the par value of US$100:

Market price of bond =US$102
Redemption proceeds from sale of the bond = Market price x Nominal amount

Par Value

  = US$102 x US$250,000

US$100

  =US$255,000

However, should the market price of the bond be lower than the par value of US$100, the scenario below could occur:

Market price of bond =US$99
Redemption, proceeds from sale of the bond = Market price x Nominal amount

Par Value

  = US$99 x US$250,000

US$100

  = US$247,500

If you hold your bond till maturity, your capital* would not be affected by price fluctuations because the issuer will repay you the full value (nominal amount) of the bond.

* Please note that repayment of nominal amount is subjected to the credit risk of the issuer. Coupons paid net of custody fee prorated for the period with which bond is held.

Citibank offers you the choice to purchase several different types of bonds. As with all bonds, issuer’s credit risk is assumed.

Fixed Rate Bond
Coupon interest is known until the maturity of the bond

Floating Rate Bond
Coupons are variable and are frequently adjusted to reflect prevailing market interest rates. The advantage is that it provides the investor with a return commensurate with the prevailing market rate. 

Zero Coupon Bond
No interest payable throughout the life of the bond. The offer price is usually at a deep discount (e.g. purchase at US$70 and matures at US$100 in 5 years)

Callable Bond
The issuer has the option to redeem the bond before maturity on specific dates at specific prices. Due to this callable feature, the coupon rate is usually higher

  • You may enjoy a regular stream of income
  • You will enjoy capital appreciation if you sell the Bond when the price has appreciated (please note prices may also decline)
  • You can consider investing in Bonds if you are looking to diversify your portfolio of investment assets

As with any investment, investing in bonds is also subjected to investment risk.

Market Risk

  • Market risk is the risk of bond prices fluctuating as a result of changes in interest rates and inflation outlook. Generally, when interest rates are on the rise with inflationary outlook, bond prices will fall. Moreover, the longer the maturity, the more sensitive the bond price is to these macro-economic changes

Credit/Default Risk

  • Investors assume the credit risk of the issuer. You may lose all of your investment if the issuer defaults on its bond or winds up or is liquidated. This product is not a bank deposit, is not government insured, is not an obligation of nor is it guaranteed by Citibank Singapore Limited/Citigroup Inc. or their affiliates (unless expressly stated in the relevant product documentation). Bond prices will be affected by the perceived credit quality or probability of default of the bond issuer.

Liquidity Risk

  • During adverse market conditions, holders of a bond may not be able to liquidate all or part of their securities as and when they require. In addition, certain bonds may not be marketable and as such, cannot be liquidated before maturity. Investors should expect a rapid decrease in mark to market prices especially after a large coupon is paid. In the event the investor wishes to liquidate his bond before maturity, he/she will have to sell at the current available market price, which may result in a loss of principal. However, there can be no assurance that the investor will be able to obtain a firm bid price for the bond for an amount at which he/she wishes to sell.

Settlement Risk

  • The investor assumes all settlement risks relating to failing to settle the bond on the relevant settlement date. In the event the issuer or counterparty fails to settle the bond, Citibank will return the money to the investor without interest. At maturity, funds will be passed on to the investor only after receipt of good funds by Citibank Singapore Limited from the issuer or counterparty. This may result in payment to the holders of this product on a date subsequent to the stated maturity date.

Sovereign Risk

  • Payment of bonds may be affected by the economics and political events in the country of the relevant issuer. The occurrence of a sovereign risk event could result in the loss of all or a portion of the principal invested should, as a result of any economic or political circumstances, payment may be made in the local currency of the country, of the relevant issuer instead of the original invested currency.

Early Redemption by Issuer Risk

  • Bonds can have provisions whereby the issuers may early redeem or “call back” the Bond, adjust or vary the terms and conditions of a Bond, substitute, convert or replace the Bonds prior to maturity.

* The above is only a summary of some of the key risks in investing in the product. Detailed risk disclosures are set out in the documentation relating to the specific product. Prior to entering into a transaction, you should ensure that you have read and understood the nature of all of the risks associated with the investment in order to determine whether the investment is suitable for you in light of your experience, objectives, financial position and other relevant circumstances. You should consult with your legal, regulatory, tax, financial and/or accounting advisors to the extent you consider it necessary in making your own investment decision.

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For Singapore Clients:

These securities are obligations only of the issuer. Unless otherwise stated, they are not bank deposits or obligations of or guaranteed by Citibank Singapore Limited, Citigroup, Inc. or any of its affiliates or subsidiaries, and are subject to investment risks (e.g. credit, price, liquidity, sovereign, etc), including the possible loss of the principal amount invested. Prices of bonds can be volatile and past performances are not indicative of future performance. Investors investing in securities denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Exchange controls may be applicable from time to time to certain foreign currencies. You should therefore determine whether any foreign currency investment is suitable for you in light of your investment objectives, your financial means and your risk profile. These securities are not available to US Persons. Investment products are not deposits, are not subject to the provisions of the Deposit Insurance Act and Policy Owners' Protection Schemes Act 2011 of Singapore, nor eligible for deposit insurance coverage under the Deposit Insurance Scheme. The investment products mentioned are not offered to individuals resident in the European Union, European Economic Area, Switzerland, Guernsey, Jersey, Monaco, San Marino, Vatican, The Isle of Man, the UK, Brazil, New Zealand, Jamaica, Ecuador or Sri Lanka. This document / communication / presentation is not, and should not be construed as, an offer, invitation or solicitation to buy or sell any of the investment product mentioned herein to such individuals.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

For International Personal Bank Clients:

The contents in this webpage do not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such contents or make such an offer or solicitation.

Investments are: Not Bank Deposits • Not Bank Guaranteed • May Lose Value • Not FDIC Insured • Not Offered to US Persons • Subject to investment risks, including the possible loss of the principal amount invested

Deposit Insurance Scheme - Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

The information provided on this website does not constitute the marketing or offering of any products or services to individuals resident in the European Union, European Economic Area, Switzerland, Guernsey, Jersey, Monaco, San Marino, The Vatican, The Isle of Man, the UK, Brazil, New Zealand, Jamaica, Ecuador or Sri Lanka. The content on this website is not, and should not be construed as, an offer, invitation or solicitation to buy or sell any of the products and services mentioned herein to such individuals.

This website is registered and physically located outside of Kazakhstan. All products and services, as may be described in the marketing materials published on the website, will be offered, negotiated and rendered by the offshore bank (Citibank International Personal Bank Singapore) from outside Kazakhstan.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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