What is a Eurobond?

 A 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 specific structure and is defined in the EU Prospectus Directive (89/298) as transferable securities.

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 classified in five types.


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 itself.


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 regulation.


Fonte: www.eurobonds.info/