BOND A debt instrument Issued for a period of more than one year For the purpose of raising capital The Federal government, states, cities, corporations, and many other types of institutions sell bonds.
EUROBOND A bond issued and traded outside the country whose currency it is denominated in, and outside the regulations of a single country; usually a bond issued by a non- European for sale in Europe It is also called global bond
Eurobond Structure The structure of a Eurobonds consists in its terms and conditions, which are printed on the actual bond. The Face The Reverse The coupons
Types of Eurobonds Straight Fixed VRNs Long term Bonds Medium term Bonds Convertibles
Advantages of Eurobonds Considerable market capacity Diversifying sources of borrowings Source for long-term investment resources Access to a broad investor base Establishing a credit history
Eurobonds and Pakistan Issue $500 million Eurobond in February 12, 2004 Maturity date is February 2009 Deutsche Bank and ABN Amro Bank Strong Demand results 4 times oversubscription Interest Rate was 6.75% Included in EMBI
Eurobonds and Pakistan March 2006 Issue $500m 10 years Eurobonds And $300 million 30 years bonds Managed by Citi Group and Deutsche Bank Interest Rates are 7.125% and 7.875% respectively