Series 66: Eurobonds And Eurodollar Bonds

Eurobonds and Eurodollar Bonds

Eurobonds are a type of international bond and are unique primarily in the way they are issued. A Eurobond is denominated in a currency other than that of the country where it is issued (sold) or where the company is headquartered.

Typically issued by multinational corporations and national governments, Eurobonds are underwritten by an international syndicate and sold to a market dominated by institutional investors. The bonds may be issued and sold in Britain by a Kuwaiti company, for example, and denominated in yen. Whatever currency the Eurobond is denominated in will be the currency that the principal and interest are paid in. Eurobonds may be denominated in any international currency.

Issuers of Eurobonds can choose to issue the bond in a country with the fewest regulatory constraints and in a currency most acceptable to the international market. Eurobonds are bearer bonds and, thus, provide anonymity to the owners and allow t