Investments Fractional Bonds

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A simpler, smarter way to enter fixed income markets

Gain economic exposure to Investment Grade bonds with lower minimum investment sizes, transparent information, and the reassurance of ADCB’s standards.

Low Entry Threshold
Start at USD 25,000, then add in USD 1,000 increments
Portfolio Diversification
Allocate the same investment amount across multiple Fractional Bonds instead of one large ticket security
Access Investment Grade Issuances
Replicate features of liquid Investment Grade bonds issued in the UAE and other GCC countries
Alternate Source of Income
Build a customized, income generating portfolio aligned to your goals and risk profile

What are fractional bonds?

Traditional bonds generally require a minimum investment of USD 200,000. Fractional Bonds let you participate with a significantly lower minimum of USD 25,000 (and in multiples of USD 1,000 thereafter), while mirroring the cash flows of a Reference Bond (coupons and principal) on a proportionate basis.
Fractional Bonds provide proportional economic exposure to the underlying reference instrument. They do not confer direct bondholder rights against the relevant issuer of the Reference Bond and are not securities.

How do they work

Your investment tracks the performance of a Reference Bond, delivering proportional returns in interest (coupons) and principal.

Illustrative example (assumptions only; not advice):


Reference Bond ISIN: XS123456789 with minimum face value USD 200,000
Fractional Bond Identifier: FB123456789 with minimum face value USD 25,000
If the Reference Bond pays USD 5,000 in interest semi annually and USD 200,000 at maturity, then a client investing a principal amount* of USD 25,000 in the Fractional Bond receives 12.5% (one eighth) of each cash flow: USD 625 semi annual coupons and USD 25,000 at maturity
* The principal amount (marked with *) is not guaranteed or capital protected. This example is for illustration only and is not indicative of actual or future returns. The value of a fractional bond is derived from the value of the Reference Bond and so a rise or fall in the value of the Reference Bond will have a corresponding effect on the value of the fractional bond.

Eligibility and documents

Available to eligible ADCB customers, subject to onboarding, suitability and risk profiling.
Please review the documents below
Fractional Bonds Trading Key Fact Statements (KFS)
Wealth Terms and Conditions
Schedule of Fees for Wealth Services
Fractional Bonds Trading Supplementary Terms and Conditions before investing.

Fees & charges

Transaction and servicing fees apply as per the Charges & Fees schedule. Taxes/withholding may apply depending on the jurisdiction.

ADCB Portfolio Type Portfolio Size Subscription Fees Recurring Investment Fee*
ADCB Transactional Portfolios (Self-directed trade) 0 - USD 249,999 2.1% 0.21% per annum
USD 250,000 - USD 499,999 1.838% 0.21% per annum
USD 500,000 - USD 999,999 1.313% 0.21% per annum
USD 1,000,000 and above 1.05% 0.21% per annum

*This is an annual fee for providing Fractional Bond Investments. It is accrued daily on the market value of the Fractional Bonds held in your transactional portfolio and charged on a semi-annual or quarterly basis. All fees include 5% VAT (where applicable) for taxable supplies or deemed supplies provided by the Bank after 1 January 2018. Fees will be debited from the Investment Account linked to your portfolio.

Important information


  • Fractional Bonds mirror economic returns but do not offer direct ownership, voting rights, or participation in corporate actions/bondholder meetings.
  • These investments are not principal protected and carry risks including liquidity, market, credit, interest rate, and limited rights.
  • In the event of default on a Reference Bond, you will not be entitled to attend or vote in bondholder meetings. The Bank will make best efforts to keep you informed and offer a sale price; however, losses may occur.
  • Risks vary by issuer and jurisdiction of the underlying Reference Bond. Refer to the Reference Bond issuance documents and in particular, the relevant risk factors for full details.
  • Fractional bonds can only be purchased and sold through ADCB subject to liquidity.
  • Past performance of the promoted financial products is not necessarily an indication or evidence of the future performance.
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