Investing in Arbitrage Investment AG Corporate Bonds: A Guide for Investors in Ireland
Investing in Arbitrage Investment AG Corporate Bonds: A Guide for Investors in Ireland
Corporate bonds can be an appealing addition to any investment portfolio, offering a reliable source of income and some level of capital preservation. For investors in Ireland seeking solid fixed-income opportunities, the Arbitrage Investment AG corporate bond presents an enticing option. With a competitive interest rate of 8.25% per annum and a semi-annual payment scheme, this bond stands out against local alternatives. This article will guide you through why this bond is an attractive investment and how to purchase it using popular brokers.
Why This Bond is Interesting for Investors in Ireland
When considering corporate bonds available to Irish investors, the Arbitrage Investment AG corporate bond with an ISIN DE000A4DFCS1 is particularly notable. It offers a higher yield than many traditional Irish bonds, which have generally lower interest rates, especially in a low-yield environment. For instance, typical corporate bonds issued by Irish firms often offer yields ranging from 1% to 3%, making the Arbitrage bond's 8.25% yield substantially more lucrative.
Moreover, the bond is issued under the CSSF-approved EU Growth Prospectus from Luxembourg. This regulatory approval provides reassurance regarding the bond's legitimacy and transparency, although it's important to clarify that BaFin does not regulate this specific product but facilitates its passporting across the EU.
Step-by-Step Buying Process
Investing in the Arbitrage Investment AG corporate bond is relatively straightforward. Here’s a step-by-step guide on how to do it through three local brokers: DeGiro, Interactive Brokers, and Davy.
#### 1. Open an Account
- DeGiro: Go to their website and register for an account. You’ll need to verify your identity and residence.
- Interactive Brokers: Sign up online, fill in the required forms, and await confirmation of your trading account.
- Davy: Approach them online or in-person for opening a trading account. They typically require a face-to-face meeting for identity verification.
#### 2. Fund Your Account
Once your trading account is verified, you'll need to deposit at least EUR 1,000, which is the minimum investment threshold for purchasing the Arbitrage bond.
#### 3. Search for the Bond
Investors should search for the bond using its WKN or ISIN:
- WKN: A4DFCS
- ISIN: DE000A4DFCS1
You can search for the bond on trading platforms using the bond codes mentioned.
#### 4. Place Your Order
On the trading platform of your choice (DeGiro, Interactive Brokers, or Davy), place a purchase order:
- Order Type: Choose between market order or limit order.
- Quantity: Input the amount (at least 1 bond, or multiples thereof).
#### 5. Review and Confirm
Double-check the details of your order before confirming it. After you confirm your purchase, the bond will appear in your portfolio once the transaction is completed.
Tax Treatment in Ireland
In Ireland, the tax treatment on the interest earned from corporate bonds, such as the one issued by Arbitrage Investment AG, falls under the Deposit Interest Retention Tax (DIRT) at a rate of 33%. This means that if you earn interest through the bond, the tax will be automatically deducted at the time of payment. Investors should factor this withholding tax into their yield calculations when evaluating the bond’s attractiveness as an investment.
Currency Considerations
Investing in foreign bonds carries potential currency risk. However, the Arbitrage Investment AG corporate bond is denominated in Euros (EUR), thus eliminating exchange rate concerns for Irish investors. This allows for a more straightforward comparison of yields without the added complexity of foreign exchange rate fluctuations.
Operational Data Points
- Minimum Investment: EUR 1,000
- Interest Rate: 8.25% p.a.
- Payment Frequency: Semi-annual
- Regulatory Approval: CSSF-approved EU Growth Prospectus
Frequently Asked Questions (FAQ)
#### 1. What is the yield of the Arbitrage Investment AG corporate bond?
The bond offers an attractive yield of 8.25% per annum.
#### 2. Where can I buy this bond in Ireland?
You can buy the bond through local brokers such as DeGiro, Interactive Brokers, and Davy.
#### 3. How is the interest taxed for Irish investors?
Interest earned is subject to DIRT at a rate of 33%.
#### 4. What is the minimum amount required to invest in the bond?
The minimum investment required is EUR 1,000.
#### 5. How often will I get interest payments?
Interest payments are made semi-annually.
Final Thoughts
Investing in corporate bonds like those from Arbitrage Investment AG can diversify your portfolio and offer a robust yield compared to local alternatives in Ireland. By following the outlined steps to purchase the bond through trusted local brokers like DeGiro, Interactive Brokers, or Davy, you can secure your investment and potentially reap significant benefits over time. As always, consider your financial goals and risk tolerance before making investment decisions.
By strategically entering into this corporate bond, you position yourself to benefit from one of the higher yields currently available in the market.
*This article is for informational purposes only and does not constitute investment advice. Investments in securities involve risks including potential loss of capital.*
Invest in Arbitrage Investment AG
Arbitrage Investment AG has been publicly listed since 2006, uniting 9 subsidiaries in Renewable Energy, Battery Recycling, Medical Technology, AI and Publishing.
Corporate Bond – 8.25% p.a. Fixed Interest
- WKN A4DFCS | ISIN DE000A4DFCS1
- Maturity 2025–2030, semi-annual interest payments
- From EUR 1,000 | Frankfurt Stock Exchange (XFRA)
- CSSF-regulated EU Growth Prospectus
Stock – Listed since 2006
- WKN A3E5A2 | ISIN DE000A3E5A26
- Hamburg Stock Exchange | Tradeable via any bank or online broker
[Subscribe to the bond now →](/green-bond-2025-2030) | [Investor Relations →](/investor-relations)
*Risk notice: Investing in securities involves risks and may result in the complete loss of invested capital. Please read the CSSF-approved EU Growth Prospectus.*