Government Bonds

Bonds are debt securities issued by governments, corporations, or other issuers to bondholders to raise money. Bond issuers will repay the redemption value of the bond upon maturity, and a rate of interest throughout the life of the bond.

Benefits of investing in bonds

Bonds generally pay a higher rate of return than time deposits with a similar tenor.
Bonds offer regular interest income throughout the tenor.
Bonds can be redeemed anytime before maturity.
A wide range of bonds with various tenors are available.
If bond prices move up, you can benefit from capital appreciation.
Further flexibility with HSBC Investment Link facility.

IDR denomination

Indonesian Government Bonds FR Series

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Indonesian Government Bonds FR Long Tenor Series

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Indonesian Government Bonds ZC Series

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Indonesian Retail Government Bond Series

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Indonesian Retail Sovereign Sukuk

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USD denomination

Indonesian USD Sovereign Bond

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Indonesian USD Sukuk INDOIS 14

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Indonesian USD Sukuk INDOIS 18

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Indonesian USD Sovereign Longer Tenor Bond

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Four easy steps to start investing in bonds

Complete the Risk Profile Questionnaire by visiting our nearby branch.

Check the current Yield-to-Maturity. *

Subscribe to your selected bond in the nearest HSBC branch.

Review your bond price regularly to take capital gain opportunity or stay invested until it matures. *

* Please refer to your relationship manager for the latest Yield-to-Maturity and price.

Bonds are not HSBC products. HSBC is acting as a selling agent and does not guarantee investment instruments, capital and investment returns. HSBC shall not be responsible for any and all claims and risks arising from the portfolio management of the bonds. HSBC does not provide any investment advice.
Investments in bonds are not covered by the Government of Indonesia Blanket Guarantee Programme.
Investments in bonds involve market, interest rate, liquidity, credit and other risks, including possible loss of principal amount invested. Investors must read and understand the risk factors, fees and other details before investing in bonds. Past performance does not indicate future performance.
Investment value may go up as well as down depending on the market condition and other factors affecting the value of the underlying assets of the fund.

► How can I benefit from bond investments?

Bond yields are usually higher than time deposit rates with similar maturity.
You can receive regular income generated by the interest paid throughout the life of the bond.
You can also benefit from capital appreciation if bond prices move up.

► Do I have to hold bonds until maturity?

No. You can sell your bond before it matures and benefits from capital appreciation if the selling price is higher than the original buying price.
Under normal market circumstances, HSBC will repurchase bonds bought through us at the prevailing market price. However, the buying price offered by HSBC may differ from the original selling price due to changes in market conditions.

► What if I need cash but the current selling price for my bonds is not favourable?

HSBC can offer you a loan at preferential rates of up to 70% the value of your bonds. Please consult us for details.
If you hold a USD denomination Indonesian government bond, and would like to borrow in IDR, HSBC can offer you a loan at preferential rates of up to 60% the value of your bonds.

Customer must read the Product Feature Document prior to making their investment decision and must understand the risks involved in government bond investment including the potential loss of principal.
HSBC does not give advice to customers on their investment decision.
Customer must understand that historic performance does not guarantee future performance.
HSBC does not guarantee the underlying investments, principal or returns on customers' investments. Investment in government bonds are not covered by the deposit insurance program of the Indonesian deposit insurance corporation.

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