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.