No one can argue against the fact that the harsh economic effects of the COVID-19 pandemic have necessitated a lot of ‘side hustles’ both for salary earners and full-time entrepreneurs.
But what if you are promised more income without having to do multiple jobs?
Sound like a scam?
No, far from that. By investing in Eurobonds, your phone can go ringing with more credit alerts than it does each month.
A bond is a loan from an investor to a borrower (usually a company or a government) based on an agreement of getting back the face value of what you borrowed with periodic interests. This understanding is why bonds are called debt instruments or fixed-interest securities.
The idea is that you can act as a bank by lending your disposable cash to a company that wishes to sell its bond at a fixed interest rate to you – technically known as an interest coupon – until the principal is paid back at maturity.
Eurobond is an investment denominated in a currency different from that of the issuer’s country. For instance, a Nigerian Eurobond is issued by the Nigerian government in US dollars (Eurodollar), or a Chinese Eurobond may be old by China in British pounds (Euro pound). Because it is called Eurobond does not mean it is issued in Euros.
For a secured bond, the issuer has the obligation of pledging specific assets (a sort of collateral) to you in case they cannot meet the agreement.
It might interest you to know that callable bonds, that is, those called or paid off by the issuer with a call provision before maturity offer you better interest rates. Normally, the company pays off such bonds before maturity with a slight premium on the principal. This means you as an investor will realize a slightly higher yield if and when the bond is paid off at a premium.
Benefits of Eurobonds
Because of its flexible nature and sure promise of returns, bonds offer you a range of options. For a start, the maturity of bonds comes in short, mid, or long terms depending on the terms reached, meaning you as a bondholder have the advantage of choosing how soon you want your money back with interest.
Even more, apart from the fact that they are relatively cheap and can be converted into cash within one fiscal year, Eurobonds affords you a range of foreign investments right from your home country.
Thus, you can make your money work and earn interest for you in Eurobonds and still get back what you lent in the end. You certainly can’t afford to miss such a juicy offer.
Visit zimvest.com.ng and sign up for Zimvest Eurobond or any other product – savings or investment – on our website.