Eurobond
A Eurobond is an international bond that is denominated in a currency not
native to the country where it is issued. It can be categorised according to the currency in which
it is issued. London is one of the centers of the Eurobond market, but Eurobonds may be traded
throughout the world - for example in Singapore or Tokyo.
Eurobonds are named after the currency they are denominated in. For example, Euroyen and
Eurodollar bonds are denominated in Japanese yen and American dollars respectively. A
Eurobond is normally a bearer bond, payable to the bearer. It is also free of withholding tax. The
bank will pay the holder of the coupon the interest payment due. Usually, no official records are
kept.
The first European Eurobonds were issued in 1963 by Italian motorway network Autostrade.[1]
The $15 million six year loan was arranged by London bankers S. G. Warburg.[2][3]
The majority of Eurobonds are now owned in 'electronic' rather than physical form. The bonds
are held and traded within one of the clearing systems (Euroclear and Clearstream being the most
common). Coupons are paid electronically via the clearing systems to the holder of the Eurobond
(or their nominee account).
[edit] References
1. ^ "History of the Autostrade Group". http://www.autostrade.it/en/chi-siamo/storia_index.html?
initPos=1.
2. ^ "$15M. Autostrade Loan, Consortium Headed By Warburgs". The Times. 19 June 1963.
3. ^ Ferguson, Niall, High Financier: the Lives and Times of Siegmund Warburg, 220 (2010).
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Definitions of Eurobonds on the Web:
A Eurobond is an international bond that is denominated in a currency not
native to the country where it is issued. It can be categorised according to the
currency in which it is issued. ...
en.wikipedia.org/wiki/Eurobonds
eurobond - Bond that is denominated in a specific country's currency and sold
to investors outside the country whose currency is used. The bonds are
usually issued by large underwriting groups from many countries. ...
www.tiaa-crefbrokerage.com/invest_glosry_EnEw.htm
eurobond - A bond that is (1) underwritten by an international syndicate, (2)
offered at issuance simultaneously to investors in a number of countries, and
(3) issued outside the jurisdiction of any single country.
www.insidefutures.com/education//glossary.php
Bonds issued by a borrower outside its own country. The bonds are
denominated in a currency foreign to the borrower or the purchaser or bo
