Eurobond

Eurobond

A bond that is (1) underwritten by an international syndicate, (2) issued simultaneously to investors in a number of countries, and (3) issued outside the jurisdiction of any single country. Eurobonds are often bearer bonds.

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Eurobond

A type of foreign bond issued and traded in countries other than the one in which the bond is denominated. A dollar-denominated bond sold in Europe by a U.S. firm is a Eurobond.

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Eurobond

Bonds issued or traded in a country using a currency other than the one in which the bond is denominated. This means that the bond uses a certain currency, but operates outside the jurisdiction of the central bank that issues that currency. Eurobonds are issued by multinational corporations; for example, a British company may issue a eurobond in Germany, denominating it in U.S. dollars. It is important to note that the term has nothing to do with the euro, and the prefix "euro-" is used more generally to refer to deposits outside the jurisdiction of the domestic central bank.

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Eurobond. A eurobond is an international bond sold outside the country in whose currency it is denominated, or issued.

For example, an Italian automobile company might sell eurobonds issued in US dollars to investors living in European countries.

Multinational companies and national governments, including governments of developing countries, use eurobonds to raise capital in international markets.