A bond denominated in Japanese yen issued by a non-Japanese company outside of Japan. It is important to note that these are traded worldwide, not just in Europe. Euroyen bonds became more common after 1984, when Japan began opening its financial markets to foreigners. Like other Eurocurrency securities, Euroyen bonds are subject to fewer regulatory restrictions because the central bank that issued the currency (in this case, the Bank of Japan) does not have any jurisdiction over the yen because the bonds are issued and traded outside Japan. For example, an American company may issue a Euroyen bond to attract non-Japanese yen-investors for its financing needs. See also: Eurobond, Eurodollar.
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