Tutorial: Structured bonds


What are structured bonds?

Structured bonds are collecting bonds with the nominal value of CZK 10,000 whose yield is premium. The premium amount depends on the development of the prices of selected underlying assets.

How do structured bonds work?

The interest yield is normally paid out on the maturity date together with the bond nominal value. The price for which the bonds are bought is also important for the actual investment yield. The price of a premium bond is affected both by the development of interest rates and by the development of underlying assets that are determining for the premium amount. The yield till maturity is not calculated for premium bonds.

Your benefits

Purchase of the premium bond will enable you to invest on stock or commodity markets for a predetermined period without a risk that the amount invested could be lost. The payout of the bond interest yield and nominal value is guaranteed by their issuer.

Your advantages

  • Thanks to a fixed maturity date, other investments can be planned.
  • Opportunity to share yields of stock or commodity markets without a risk that the amount invested could be lost.
  • Bonds may be bought at Česká spořitelna branches or through SERVIS 24.

You should know

  • Bond selling and purchase prices change every day due to yield changes on the bond market. If an investor keeps bonds till the maturity date, price fluctuations will not affect its final yield.
  • Bonds are offered in the form of a collecting bond - Česká spořitelna purchases and sells bonds by transfer of securities in the register of shareholders. The transfer is settled within 3 business days after ordering a trade. If an investor pays the price of a bought bond, a share in a collecting bond will be credited to the investor's asset account within 3 business days after ordering the trade.
  • Issue additions of bonds issued by Česká spořitelna are available at branches or at websites of Česká spořitelna.


Purchase conditions

  • Bonds can be bought for prices as quoted in the current bond price list.
  • To buy a bond, you need to have an asset account of investment instruments with Česká spořitelna. Opening an asset account is free of charge, it can be done at any branch of Česká spořitelna, an investor - natural person will have to submit a valid identity card, a legal person will have to submit documents of corporate personality.
  • To buy a bond, it is not necessary to have a money account at Česká spořitelna. Money for the payment of purchase may be sent to the respective collecting account from any Czech crown account
  • The fee of one instruction for bond purchase or sale is CZK 100, without regard to the number of bought or sold bonds.
  • The minimum investment is normally 3 pieces, i.e. CZK 30,000.

Who can buy?

  • Citizens of the Czech Republic or foreign nationals over the age of 18 years (legal representative in the case of a minor).
  • Legal person, natural person–entrepreneur.
  • Other entities established under the laws of the Czech Republic (foundations, movements, political parties).

How do structured bonds react to…

… growth of underlying assets?
Issues executed so far focus on the price increase of underlying assets. Any increase of underlying asset prices is thus good news for the premium amount.

… decrease of underlying assets?
Issues executed so far focus on the price increase of underlying assets. Any decrease of underlying asset prices thus can have a negative impact on the premium amount