is a Eurobond?
Eurobond is a debt contract, which records the borrower’s obligation to
pay interest at a given rate and the principal amount of the bond on
specified dates. The issue has a
and is defined in the EU Prospectus Directive (89/298) as transferable
Although the distinction between
Eurobonds, Foreign bonds and External bonds
is less relevant than in the past, it is important to keep in mind that
these are different classes of securities. As for Eurobonds, they can be
Eurobond is a treadable instrument: it is intended to be bought and sold
during the period up to it maturity. It is usually launched through a
public offering and is listed on a stock exchange.
It’s important to notice that there is no central register where holders
of the issue are named. So Eurobond is in this sense a bearer
instrument: interests are paid upon presentation of detachable coupons,
while the principal amount is repaired on presentation of the Eurobond
Although Eurobonds are listed in several stock exchanges, the London and
Luxemburg stock exchanges are those most frequently used.
Eurobonds are not subject to tax and largely free from government