Debt Securities*

An opportunity to receive a repayment of your capital investment with interest at the end of the contract period.

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* AS Citadele Banka does not provide investment portfolio management services, fund and asset management services, individual consultations on investing in financial instruments or recommendations regarding the capital market. These services are offered by other companies in the Citadele group: PIAS CBL Asset Management, AAS CBL Life and AS CBL Atklātais Pensiju Fonds.

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An opportunity to plan your income cash flows

Usually a fixed coupon interest rate and bond maturity date.

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Your investment is sufficiently liquid

You have the option of selling the bond before the maturity date.

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Profitability which suits your risk level

You can choose the most suitable balance between profitability and risk for you.

Capital investment options


Debt securities or bonds are released into circulation by governments, local councils or businesses in order for them to borrow money from investors. The bond confirms the issuer's debt obligations towards the bond holder-investor. Usually, bonds have a fixed interest rate and maturity date, which gives the investor a clear idea of the debt repayment term and interest income.

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These are a type of fund in which investments are made into several debt instruments simultaneously. The fund is managed by a professional manager, who selects the most suitable debt instruments for the fund's target market and aims to ensure that the fund operates effectively with maximum returns on investments.

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3 simple steps to start investing


Sign an agreement with Citadele bank


If you are a Citadele customer, sign an agreement on the opening of a financial instrument account and the enabling of transactions with financial instruments (in accordance with which Citadele will open a financial instrument and financial instrument cash account for you). This is an account into which the securities you purchase will be transferred, as well as the money you intend to use for financial instrument transactions.
Sign agreement can be concluded as follows:

  • The Citadele online bank: Investments > Create new > Application for conclusion of the Contract on Financial Instruments Accounts and Transactions.
Log in to online bank
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Transfer funds to your financial instrument cash account


Transfer funds to your financial instrument cash account in the way that's easiest for you

  • The Citadele online bank: Payments > Payments between accounts.
  • The Citadele mobile app: Pay > Between accounts.
  • Additional options, you can also exchange currency within your financial instrument account. You can do this through the Citadele online bank: Payments > Currency exchange.
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Submit a security purchase/sale order

  • The Citadele online bank: Investments > New order > Order for investment fund unit purchase or redemption or Order for stocks purchase/sale, or Order for bond purchase/sale.
  • By calling a Citadele broker at +371 67010555.
  • Worth to know - if you wish to invest in shares traded on the United States markets, you will also need to fill in and submit a W-8BEN tax form. Find out more by calling a Citadele broker at +371 67010555.
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What are the risks in investing in debt instruments?

The main risks when investing in debt instruments are: credit risk, interest rate risk, market risk and issuer risk. Compared with a well-diversified investment fund, investments in debt instruments require a comparatively larger initial investment. This type of investment offers a stable future income; however, investing in certain debt instruments may be riskier than investing in a diversified debt security fund portfolio. You can reduce the risks by:

  • when planning long-term investments, choosing debt instruments with a higher investment rating, such as government bonds;
  • making your portfolio more diverse with different types of debt instruments, if your investment portfolio size allows, or by choosing to invest in debt instrument funds.
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How do I open a financial instrument account through the online bank?

To start investing in financial instruments (shares, bonds, investment funds including exchange-traded funds or ETFs) you must be a Citadele customer:

You must sign an agreement for opening a financial instrument account and making transactions with financial instruments. It is easiest and simplest to sign the agreement in the online bank under Investments.

In the application, you must add the following:

  • Create a phone password. This is a password you make up yourself (a word using the Latin alphabet, may also contain numbers), which you will have to tell our brokers if you have to identify yourself during a phone call. This password is also used in transaction confirmations that are emailed to you. 
  • Select a default currency by which the value of your securities portfolio will be calculated, your commission fee will be taken, and so on. Your financial instrument account is a multi-value account, so you can use it to hold and use funds in different currencies.
  • Your financial instrument account can be designated an “Investment Account,” which in accordance with the Law On Personal Income Tax is subject to simplified tax calculation and declaration, however there are some restrictions to this (for example, for securities transfers). You can find out what choice is right for you here.

In the online bank, under Document History, you will see the completion status of the order you have submitted, and the associated account number. We will transfer the securities you purchase into this account, and hold them there, as well as the money you use for transactions with financial instruments. We open the account within 3 hours of receiving your application.

Important! To purchase securities which are sold on the U.S. markets, or who make their money in the U.S., fill in and submit three copies of a valid (personally signed) W-8BEN tax form. You can submit the form at any Citadele branch, first booking an appointment through our website.

We can use the data we have available to prepare this form and send it to your chosen Citadele branch for signing. You need to request this by, for example, submitting a free-form order through the online bank.
The form is valid for 3 years.

Additional information for legal entities: If the company’s management wishes to authorise an employee to make financial instrument transactions in the company’s account, and who is not an authorised person according to the business registry, you must submit an additional authorisation form. See example here.

How do I make a transfer from my financial instrument cash account through the online bank?

Log in through the online bank and select Payments > Payment between accounts.

Afterwards, select the financial instrument cash account from which you will make the payment, and the current or card account to which you would like to make a transfer.

You can only pay within Citadele, meaning that you can transfer money from your financial instrument account to a different account that you hold with us, but not to an account held with any other bank.

Purchase or sale of bonds

You can submit an order for the purchase or sale of bonds in the online bank under Investments > New order > Order for the purchase or sale of bonds.

The order must contain the security’s details and transaction terms.
Security details:

  • Issuer: the name of the bond issuer;
  • ISIN code: the security’s unique code;
  • Maturity date;
  • Coupon rate;

Transaction terms:

  • Operation type: purchase or sale;
  • Nominal: transaction amount;
  • Order type: choose from Market or Limit, where:
    • MKT - Market is a market order where the transaction is processed at the market price registered at the exchange at the moment of submitting the order;
    • LMT - Limit is a price-limiting order. You can purchase or sell the security at the price specified or higher (but not lower), if possible and if the market has reached this price.
  • The order’s date of expiry. Bond orders are, by default, Day orders, which are valid for one trading session.

How do I submit an order to transfer securities through the online bank?

To submit an order to transfer or receive securities through the online bank, under Investments, go to Orders > New order > Securities > Receiving or transferring financial instruments, and fill in the order.

The order must include:

  • The transaction date (order date);
  • The payment date (completion date);
  • The name of the financial instrument;
  • The financial instrument’s ISIN code;
  • The number of financial instruments;
  • The financial instrument’s currency;
  • The sender/recipient’s name;
  • The personal code or registration number of the sender/recipient;
  • The sender/recipient’s financial instrument account number;
  • The name of the sender/recipient’s credit institution or brokerage;
  • The sender/recipient’s depositary details.

In the case of deregistration (receiving securities from the Nasdaq CSD Depository Initial Register), you do not have to fill in the Sender’s financial instrument account number.

For deregistration, you can also submit a free-form order under Investments> Orders > New order > Securities > Free-form order, indicating the number of shares and the name you wish to deregister to your financial instrument account from the Nasdaq CSD Initial Register.

Important information about transferring securities

To receive securities, you must:

  • Submit an order to receive securities;
  • Submit the securities transfer order to us/the brokerage from which the securities are being transferred.

To transfer securities, you must:

  • Submit an order to transfer securities;
  • Submit the securities receipt order to us/the brokerage to which the securities are being transferred.

Bear in mind:

  • The transaction details, including for transaction and payment dates, must match on both orders. The payment date should be no sooner than +2 business days from when the order is submitted.
  • The commission fee for transferring or receiving securities must be available in your financial instrument account.
  • Transfers resulting in a change of ownership of the securities may require additional documents to justify the transfer.

How do I transfer money to my financial instrument cash account in online banking?

Log into the online bank and select Payments > Payment between accounts.

Choose the account from which you will make the payment, add the amount and select the investment account you wish to transfer to. You should add the currency you wish to invest in.

There is no commission fee for payments between your own accounts, as long as the order is submitted through the Payments section of the online bank.

How do I submit an order to transfer securities at a branch?

To submit an order to transfer or receive securities at a branch, you must fill out an order for a financial instrument transfer.

The order must show:

  • The name of the financial instrument;
  • The financial instrument’s ISIN code;
  • The financial instrument’s currency;
  • The transaction date;
  • The payment date;
  • The sender and recipient’s financial instrument account number;
  • The name of the sender/recipient’s credit institution or brokerage;
  • The name and personal code or registration number of the sender/recipient.

In the case of deregistration (receiving securities from the Nasdaq CSD Depository Initial Register), you do not have to fill in the Sender’s financial instrument account number.

Branch visits are by appointment only, so please sign up here.
 

More questions
How do I open a financial instrument account through the online bank?

To start investing in financial instruments (shares, bonds, investment funds including exchange-traded funds or ETFs) you must be a Citadele customer:

You must sign an agreement for opening a financial instrument account and making transactions with financial instruments. It is easiest and simplest to sign the agreement in the online bank under Investments.

In the application, you must add the following:

  • Create a phone password. This is a password you make up yourself (a word using the Latin alphabet, may also contain numbers), which you will have to tell our brokers if you have to identify yourself during a phone call. This password is also used in transaction confirmations that are emailed to you. 
  • Select a default currency by which the value of your securities portfolio will be calculated, your commission fee will be taken, and so on. Your financial instrument account is a multi-value account, so you can use it to hold and use funds in different currencies.
  • Your financial instrument account can be designated an “Investment Account,” which in accordance with the Law On Personal Income Tax is subject to simplified tax calculation and declaration, however there are some restrictions to this (for example, for securities transfers). You can find out what choice is right for you here.

In the online bank, under Document History, you will see the completion status of the order you have submitted, and the associated account number. We will transfer the securities you purchase into this account, and hold them there, as well as the money you use for transactions with financial instruments. We open the account within 3 hours of receiving your application.

Important! To purchase securities which are sold on the U.S. markets, or who make their money in the U.S., fill in and submit three copies of a valid (personally signed) W-8BEN tax form. You can submit the form at any Citadele branch, first booking an appointment through our website.

We can use the data we have available to prepare this form and send it to your chosen Citadele branch for signing. You need to request this by, for example, submitting a free-form order through the online bank.
The form is valid for 3 years.

Additional information for legal entities: If the company’s management wishes to authorise an employee to make financial instrument transactions in the company’s account, and who is not an authorised person according to the business registry, you must submit an additional authorisation form. See example here.

How do I make a transfer from my financial instrument cash account through the online bank?

Log in through the online bank and select Payments > Payment between accounts.

Afterwards, select the financial instrument cash account from which you will make the payment, and the current or card account to which you would like to make a transfer.

You can only pay within Citadele, meaning that you can transfer money from your financial instrument account to a different account that you hold with us, but not to an account held with any other bank.

Purchase or sale of bonds

You can submit an order for the purchase or sale of bonds in the online bank under Investments > New order > Order for the purchase or sale of bonds.

The order must contain the security’s details and transaction terms.
Security details:

  • Issuer: the name of the bond issuer;
  • ISIN code: the security’s unique code;
  • Maturity date;
  • Coupon rate;

Transaction terms:

  • Operation type: purchase or sale;
  • Nominal: transaction amount;
  • Order type: choose from Market or Limit, where:
    • MKT - Market is a market order where the transaction is processed at the market price registered at the exchange at the moment of submitting the order;
    • LMT - Limit is a price-limiting order. You can purchase or sell the security at the price specified or higher (but not lower), if possible and if the market has reached this price.
  • The order’s date of expiry. Bond orders are, by default, Day orders, which are valid for one trading session.

How do I submit an order to transfer securities through the online bank?

To submit an order to transfer or receive securities through the online bank, under Investments, go to Orders > New order > Securities > Receiving or transferring financial instruments, and fill in the order.

The order must include:

  • The transaction date (order date);
  • The payment date (completion date);
  • The name of the financial instrument;
  • The financial instrument’s ISIN code;
  • The number of financial instruments;
  • The financial instrument’s currency;
  • The sender/recipient’s name;
  • The personal code or registration number of the sender/recipient;
  • The sender/recipient’s financial instrument account number;
  • The name of the sender/recipient’s credit institution or brokerage;
  • The sender/recipient’s depositary details.

In the case of deregistration (receiving securities from the Nasdaq CSD Depository Initial Register), you do not have to fill in the Sender’s financial instrument account number.

For deregistration, you can also submit a free-form order under Investments> Orders > New order > Securities > Free-form order, indicating the number of shares and the name you wish to deregister to your financial instrument account from the Nasdaq CSD Initial Register.

Important information about transferring securities

To receive securities, you must:

  • Submit an order to receive securities;
  • Submit the securities transfer order to us/the brokerage from which the securities are being transferred.

To transfer securities, you must:

  • Submit an order to transfer securities;
  • Submit the securities receipt order to us/the brokerage to which the securities are being transferred.

Bear in mind:

  • The transaction details, including for transaction and payment dates, must match on both orders. The payment date should be no sooner than +2 business days from when the order is submitted.
  • The commission fee for transferring or receiving securities must be available in your financial instrument account.
  • Transfers resulting in a change of ownership of the securities may require additional documents to justify the transfer.

How do I transfer money to my financial instrument cash account in online banking?

Log into the online bank and select Payments > Payment between accounts.

Choose the account from which you will make the payment, add the amount and select the investment account you wish to transfer to. You should add the currency you wish to invest in.

There is no commission fee for payments between your own accounts, as long as the order is submitted through the Payments section of the online bank.

How do I submit an order to transfer securities at a branch?

To submit an order to transfer or receive securities at a branch, you must fill out an order for a financial instrument transfer.

The order must show:

  • The name of the financial instrument;
  • The financial instrument’s ISIN code;
  • The financial instrument’s currency;
  • The transaction date;
  • The payment date;
  • The sender and recipient’s financial instrument account number;
  • The name of the sender/recipient’s credit institution or brokerage;
  • The name and personal code or registration number of the sender/recipient.

In the case of deregistration (receiving securities from the Nasdaq CSD Depository Initial Register), you do not have to fill in the Sender’s financial instrument account number.

Branch visits are by appointment only, so please sign up here.
 

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In accordance with Republic of Latvia legislation, financial instruments are held separately from other bank assets, therefore the customer does not take on the risks of a situation where a bank is unable to operate, causing the bank to become bankrupt or insolvent, as well as of direct illegal activity aimed at the bank.

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