A Global Depository Note (GDN) is a debt instrument created by a depositary bank that confirms an investor’s ownership of a debt security denominated in local currency. The Global Depository Note (GDN) fully reproduces the terms of the underlying bond (interest rate, maturity, credit quality, etc.). The main difference between a global depository note and a basic local bond is that all GDN settlements are made in US dollars. GDN’s sales and purchases are also recorded in Europe with Euroclear and Clearstream and in the USA with the Depository Trust Company (DTC).
The Global Depository Note serves to enable investors from completely different countries to invest in local bonds, to which they would not have access without the GDN. At the same time, the holder does not bear additional currency risk associated with fluctuations in the currency of the initial basic issue against the US dollar. For the local bond market, a global depositary note is also useful as it enables attracting international investors by diversifying the pool of investors.
The analogue of a global depositary note in the bond market is a depositary receipt on the stock market.
You can find global depository notes in the Cbonds database via the "Bond Search"
by selecting in the block "Сlassification" - "Search only for" - "Global Depository Notes" and setting up other filters you need.
Example of a global depository note: Colombia, 10% 24jul2024, COP (US195325CK91)