Nordea bank offers bonds related to EURIBOR for investors prefering safe investments

“Currently EURIBOR 3-month rate is 1.04 %, while last year it was close to 0,6 proc. Remembering 2008, when EURIBOR 3-month rate was more than 5 % and looking at the processes taking place in the European interbanking market, we forecast that during the upcoming five years EURIBOR rate should further increase“, says M. Plakys.

According to him, companies that invest in euros and accept only a minimum risk and expect a low guaranteed return should take advantage of this situation. Nordea Bank Lietuva currently offers bonds with fixed minimum and maximum annual interest. Bond related to EURIBOR is evaluated every 3 months setting up new coupon payments. Investors are paid four times a year, every quarter.

“This means that if a person buys a bond and after a quarter EURIBOR rate is the same or ever lower – below 1.7 %, - the bank still pays the coupon payment according to the nominal bond value. If in five years EURIBOR increases to above 4 %, return will be paid according to the maximum value – 4 % annual return“, Nordea Bank Lietuva representative names the benefits and low riskiness of a bond.

M. Plakys claims this is an exceptionally conservative alternative to fixed term deposits that does not have additional risk payment. Minimal guarantees and fixed interest exceed annual fixed term deposit rates in euros.

Bonds can be bought till December 9th. Minimal amount to be invested is 1000 euros. The only alternative offered is only Basic type of a bond. Nordea bonds can be purchased in all Nordea Bank Lietuva client branch. No purchase and saving fees are applied to bonds, which can also be bought in the secondary market before the five year term, and get the refund if prefered.