Sell­ing deben­tures

CityPress - - Business -

Prim­rose writes:

I have cer­tifi­cates from deben­tures given to me by my pre­vi­ous em­ployer. What can I do with them? Nico-Louis Min­nie, the head of wealth man­age­ment plat­forms at Liberty In­vest­ments, replies:

This is quite an in­ter­est­ing ques­tion, es­pe­cially since it is called a deben­ture and not a bond. Deben­tures are like bonds is­sued by com­pa­nies and they can pay reg­u­lar in­ter­est, a fi­nal re­demp­tion pay­ment, or both. They are not ac­tively traded and the is­suer main­tains a deben­ture roll, which con­tains the de­tails of the deben­ture hold­ers. They are all fixed term and since they are not ac­tively traded, one gen­er­ally has to hold them to ma­tu­rity, when the is­suer will pay out ei­ther cash or shares, de­pend­ing on the ac­tual word­ing of the con­tract.

You need to get in con­tact with your pre­vi­ous em­ployer to find out when the deben­ture ma­tures and will be paid out. You should also find out if you’re en­ti­tled to any reg­u­lar in­ter­est pay­ment or if all the in­ter­est is paid on the date of ma­tu­rity.

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