Enjoy a periodic coupon** and redemption price at maturity*
Become a bondholder. A bond is a recognition of the issuing body's debt. The bond has a fixed term, an interest rate that entitles the holder to a periodic coupon** and a redemption price at maturity*.
A bond has a fixed borrowing term. In practice, its issuer borrows the funds for a set period of time, and you can then take out one or several bonds. Each bond represents a participation in this loan.
A bond is a recognition of the issuer's debt to you, the bondholder. You can therefore receive any interest in the form of coupons (periodic in this case).
A bond has a redemption price at maturity*. In general, this is 100% of the nominal value of the bond.
** Possible coupon. You can in fact collect interest (also called coupons). In this case the applied interest rate may be fixed or variable.
Let's take an issuer. This could be:
- a large private company (Belgian or foreign)
- a bank
- an institution
- a public organisation (Belgian or foreign)
- an international organisation.
This issuer issues a long-term loan facility; in other words it borrows money. You can then subscribe to one or several bonds. Each bond represents a participation in this loan. In concrete terms, a bond is a recognition of the issuer's debt to you, the bondholder. You can then receive any interest (coupons).
A bond has:
- a fixed borrowing term
- an issue price (if bought during the subscription period on the primary market) or a purchase price (if bought on the secondary market)
- an interest rate that entitles the holder to payment of a periodic coupon**
- a redemption price at maturity* (in general, 100% of the nominal value of the bond).
More details can be found on page 6 of the Simplified brochure issued in connection with MiFID regulations (PDF).
Bonds are issued on the primary market. It is possible to subscribe to them during a subscription period. A bond may be issued at par (issue price = 100% of nominal value), above par (e.g. 102%) or below par (e.g. 98%).
Once they have been issued, bonds may be traded (purchased/sold) on the secondary market, where prices vary daily: when interest rates rise, prices fall and vice-versa.
- Risk of capital losses
- Fluctuation risks in the value of the financial instrument (market risk), interest or index rate trends and rating review prospects.
- Exchange rate risk: also called currency risk. If there is an adverse trend in the currency being invested in, the return will be eroded following the shortfall in profit due to the conversion to euro.
- Liquidity risk
- Bankruptcy risk
Due to various factors, the value of the bond will rise or fall on the secondary market over time. If the investor sells before the maturity date this may incur capital gains or losses.
For information on fees, please consult ING Belgium SA/nv's document Charges applied to the main securities transactions (PDF)
Buying or selling bonds incurs transaction fees such as brokerage fees, stock exchange taxes (TOB) and withholding tax.
Make an appointment directly with the ING branch of your choice.
If you have a complaint, please contact ING Complaint Management, Cours Saint Michel/Sint-Michielswarande 60, 1040 Brussels or e-mail firstname.lastname@example.org. If you do not receive a satisfactory response, contact the Ombudsman for Financial Disputes, North Gate II, Avenue Roi Albert II/Koning Albert II-laan 8/bt 2, 1000 Brussels (www.ombudsfin.be).