Everything about eurobonds

25.03.2019

Eurobonds are the type of securities. These are stocks produced in the currency, that is not native for  emitters (organizations, which release shares for their own development) for foreign investors, for whom the currency also can be not native.

Nominal value is represented in US dollars. Eurobonds constitute coupons, thanks to which their owners can get their percent within a specified time frame.

Interesting fact. The prefix «euro», which you can see in the name, is not connected with the currency of eurobonds or the place they are released. This is only a conventional thing, because first eurobonds were produced in Europe.

Who can be the issuer of eurobonds?

These securities can be produced by:

Everything about eurobonds

It is when the real price is lower than nominal in case of compensation in the other currency (different from the currency of the loan).

Types of eurobonds. They are classified according to 2 parameters:

According to the first factor, there are 5 types of eurobonds:

  1. fixed rate bonds;
  2. zero coupon bonds;
  3. capital growth bonds;
  4. deep discount bonds;
  5. floating rate note.

Taking into accound a second factor, 4 types of these securities may be distinguished:

  1. bonds with call option;
  2. bonds with put option;
  3. restractable bonds (with both call and put option);
  4. bullet bonds (without a right of early withdrawal by an issuer).

Everything about eurobonds

Conclusion: peculiarities of eurobonds

These securities have such specifities:

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