Eurobonds Flashcards
What are Eurobonds?
Bonds issued and sold outside of their home country (e.g. Eurobond issued in UK issued in USD).
What is the Structure of the Eurobond Issuance?
1) Issuer + lead manager work on the details of the issue.
2) Syndicate of banks are established and agree to sell the securities.
3) Syndicate sell the Eurobonds to their clients.
What form of Share are Eurobond issued in?
Bearer shares.
Where are Eurobonds held?
Immobilised in share depositiories (e.g. Euroclear or clearstream).
How are Eurobonds regulated?
No national regulation, thus investors receive interest gross.
Who’s responsible for paying tax?
Investors due to no national reg.
Settlement period for Eurobonds?
T+2.
Examples of Eurobonds?
- ZCBs.
- Stepped bonds.
- FRNs.
- Fixed coupon.
What’s a Stepped-bond?
One who’s coupon increases over time.
