International Bond (Eurobond)

A Eurobond is a debt security issued on the external (international, offshore) bond market, often with the following characteristics: placed according to international law, a large international investment bank or more often a syndicate of international banks act as an underwriter, the placement is carried out among investors from several countries, initial listing is carried out on one of the international trading floors. A distinctive feature of the Eurobonds is the assigned ISIN-code starting mainly with XS / US-symbols. However, some international bonds have ISIN codes started from another symbols, for example RU, DE, CH.

Many textbooks indicate that Eurobonds should be placed in a currency other than the currency of the issuing country. Despite this, a Eurobond can be placed in any currency (and not necessarily in euros). Nevertheless, the overwhelming majority of placements are made in USD and EUR, since the attractiveness of issues in these currencies for investors from different countries is greater. Examples: Russian Railways Eurobond in rubles, AT&T Eurobond in US dollars, EU Eurobond in Euro.

It should be noted that the Eurobond are not tied to the European Union, although the first Eurobonds were indeed issued in Europe. At the moment, the issuer can be a country or organization from any region. However, Eurobonds are often placed not by the direct borrower, nor by the company that is the beneficiary of the issue, but by a specially created SPV (special purpose vehicle) registered in an offshore jurisdiction for a number of issues.

You can find Eurobonds in the Cbonds database through the “Bond Search”, by selecting “International bonds” in the “Type” filter and setting up other filters you need.