Eurobond
IntermediateA Eurobond is a bond issued in a currency different from that of the country or market in which it is issued, such as a US dollar bond issued in London, typically to international investors.
Despite the name, Eurobonds are not necessarily issued in euros or in Europe. The term predates the euro and refers to international bonds issued outside the jurisdiction of the currency they are denominated in.
For example, a Japanese company might issue US dollar bonds in London to international investors. These would be Eurodollar bonds, a type of Eurobond.
The Eurobond market developed in the 1960s, centred in London, as a way for companies and governments to raise money internationally with fewer regulatory restrictions than in domestic markets. Eurobonds are usually issued through international banking syndicates and held through international settlement systems such as Euroclear and Clearstream.
Eurobonds allow issuers to tap a wide range of international investors and choose the currency that best suits their needs. The term should not be confused with proposals for jointly issued euro area government bonds, which are also sometimes called eurobonds.
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