Dual Currency Issue

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Dual Currency Issue

A bond in which coupons are paid in one currency while the principal is paid in another. Dual currency issues set an exchange rate that usually allows payments in the stronger currency to appreciate more. There are number of ways to calculate the exchange rate; the three most common are to use the exchange rate at the time of issue, the spot rate at the time payments are made, and to use a third currency to determine the value of the other two. Dual currency issues are most commonly used by (and are most valuable to) multinational corporations and traders on the eurobond market.
References in periodicals archive ?
90%) compared to the Euro/US dollar dual currency bond, it is expected to sell at Par while the dual currency bond is expected to sell at a discount.
The dual currency bond would be a [euro]40 million Euro fixed rate bond denominated in Euros, paying a 7.
NME also announced that it intends to commence cash tender offers for any and all of AMI's 6-1/2% Dual Currency Bonds due 1997 and 5% Swiss Franc Bonds due 1996.