What Are Corporate Bonds?
Corporate bonds are debt securities issued by companies to raise capital. When you invest, you lend money to the company in exchange for regular interest payments and the return of your principal at maturity.
Corporate bonds generally offer higher yields than government bonds but come with higher risk because a company may fail to repay its debt.
Actual available corporate bond offerings will be posted in the Announcements tab.
Who Can Invest Through FirstMetroSec?
FirstMetroSec allows clients to invest in primary market corporate bonds at zero broker’s fees.
Eligible account types include:
- Individual
- Joint
- In-Trust-For (ITF) accounts
Minimum investment: ₱50,000, with minimum increments of ₱10,000 thereafter.
How to Participate in Corporate Bond Offers
- Submit an Intent Form
You must submit an Intent Form before the announced deadline. This indicates your firm and irrevocable intention to participate.
- Ensure Your Account Has Cleared Funds
Your buying power should have enough cleared/withdrawable cash. The needed amount will be earmarked.
- Wait for Allocation Email
During the offer period, you will receive an email confirming how many bonds were allocated to you. Your account will be debited on the same day.
- Submit Required Documents
Kindly submit the following before the offer period ends:
- Application to Purchase (ATP)
- PDTC Signature Card
- Client Suitability Assessment (CSA) Failure to submit leads to order cancellation.
When Will the Bonds Appear in Your Portfolio?
Within 5 business days from the issue and listing date.
How Will You Receive Interest?
Interest payments are sent directly to your FirstMetroSec account on scheduled payout dates. If the date falls on a holiday or weekend, payment is credited on the next business day.
Can You Sell Corporate Bonds Before Maturity?
Yes, you may sell in the secondary market, subject to prevailing market rates, fees, and taxes.