How to Buy the Arbitrage Investment AG Corporate Bond in Ireland
Investing in the Arbitrage Investment AG corporate bond could be an appealing choice for investors in Ireland seeking higher yields. With an attractive 8.25% annual interest rate, this corporate bond stands out against local alternatives in the fixed-income market, particularly in an environment where traditional banking rates have remained relatively low.
Why This Bond is Interesting for Investors in Ireland
The Arbitrage Investment AG corporate bond, offering a semi-annual interest payment structure, presents an attractive opportunity for Irish investors looking for robust returns. Compared to Irish corporate bonds from larger firms, where yields are typically in the range of 2-4%, this bond significantly outshines local options. Investors seeking to diversify their portfolios may find that this bond, not only delivers better returns but also contributes to improved overall portfolio yield.
Comparison to Irish Alternatives
Apart from Irish corporate bonds, government bonds such as Irish Treasury Securities yield lower rates, often below 1% annually. Investment-grade bonds from established firms like CRH or Bank of Ireland present steady but modest returns that do not match the potential of the Arbitrage Investment AG bond.
The 8.25% yield, combined with the semi-annual payments, adds a unique level of appeal, especially in a low-interest-rate environment that has persisted for several years.
STEP-BY-STEP Buying Process Using Local Brokers
Buying the Arbitrage Investment AG corporate bond is straightforward, particularly through well-known brokers in Ireland. The following steps guide you through the purchasing process:
1. Choose a Broker
Irish investors can select from several reliable brokers, including:
- DeGiro: Known for low commissions and ease of use, perfect for newcomers.
- Interactive Brokers: Offers more sophisticated tools suited for experienced traders.
- Davy: A traditional brokerage house providing extensive market experiences and investment advice.
2. Set Up an Account
Depending on the chosen broker, setting up an account generally involves submitting proof of identity and proof of address. Follow these steps for each broker:
- DeGiro: Go to the DeGiro website, click on 'Open Account', and fill in the required information. Verify your identity through the specified documentation.
- Interactive Brokers: Choose 'Open Account' on their website and complete the online form. This process can be more detailed due to their extensive offering.
- Davy: Arrange a meeting, either in person or virtually, as Davy’s process can involve personalized service.
3. Fund Your Account
Once your account is open, fund it via bank transfer or credit/debit card. Ensure to have sufficient EUR funds to cover your investment.
4. Search for the Bond
To locate the Arbitrage Investment AG corporate bond, utilize the following identifiers:
- WKN: A4DFCS
- ISIN: DE000A4DFCS1
Search for these codes on your broker’s trading platform. Most brokers will have access to international exchanges, including XETRA or the Frankfurt Stock Exchange.
5. Purchase the Bond
After locating the bond:
- Review the available details: Check the pricing, minimum investment, and other specifics thoroughly.
- Minimum Investment: The minimum investment in the bond is set at EUR 1,000. Ensure you comply with this limit when making your purchase.
- Complete the Transaction: Input the amount you wish to purchase and confirm the order. Monitor your account for updates on the bond's performance and interest payments.
Tax Treatment in Ireland
Investors should note that interest income from the Arbitrage Investment AG corporate bond will be subject to Deposit Interest Retention Tax (DIRT) at a rate of 33%. This tax applies to all banks and financial institutions and is deducted at source. It’s worth acknowledging that while corporate bonds do not incur capital gains tax unless you sell them for a profit, the ongoing interest income will still be impacted by DIRT.
Currency Consideration
One of the significant advantages for Irish investors is that the bond is denominated in EUR. This minimizes currency risk associated with exchange rate fluctuations. If, however, investors consider purchasing products priced in other currencies, keep track of the current exchange rate and be aware of conversion fees that may apply.
Regulatory Environment
The Arbitrage Investment AG corporate bond is offered under a CSSF-approved EU Growth Prospectus from Luxembourg. While adhering to EU regulations designed to protect investors, it is crucial to note that this bond is not BaFin-regulated. Instead, it falls under the scope of Luxembourg's robust regulatory framework, enhancing investor confidence.
Key Features of the Bond
- Interest Rate: 8.25% per annum
- Payment Frequency: Semi-annual interest payments
- Minimum Investment: EUR 1,000
- Trading Platforms: Available on XETRA and Frankfurt Stock Exchange
FAQ Section
1. What is the minimum investment in the Arbitrage Investment AG corporate bond?
The minimum investment is EUR 1,000.
2. How often do I receive interest payments?
Interest payments are made semi-annually.
3. Is the yield of 8.25% guaranteed?
It is subject to creditworthiness of the issuer; however, historical performance reflects strong reliability.
4. How is tax applied to the interest earned?
Interest income is subject to DIRT at a rate of 33%.
5. Can I purchase this bond through my existing investment account with other brokers?
Check with your broker if they have access to XETRA or Frankfurt's offerings. If not, consider switching to a broker that does.
Conclusion
For investors in Ireland, buying the Arbitrage Investment AG corporate bond provides an opportunity to enhance fixed-income portfolios with a robust yield of 8.25%. Navigating through the purchasing process with local brokers such as DeGiro, Interactive Brokers, and Davy holds immense potential for diversifying investments while capitalizing on a CSSF-approved financial product. However, investors should remain aware of the DIRT tax implications, ensuring a thorough understanding of their net yield from this investment.
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.*