A Global Eurobond is a bond issued offshore by governments or corporates denominated in a currency other than that of the issuer's country. Global Eurobond is usually long-term debt instruments.
Global Eurobond is typically denominated in US Dollars (USD) or EUR. Pound, Japanese Yen, Swiss Franc and other currency denominated Global Eurobonds are also available.
Features and Advantages
- They are generally issued with 5-30 years of maturity.
- The coupon interest may be fixed or floating. Payments may be annual or semi-annual.
- Although issued as long term, Eurobonds may be sold before maturity; the market conditions at the date of cash-in are taken the as basis for the sale price. Higher than expected returns can be obtained in a market where interest rates decline, but the reverse is also possible.
- When sold, the bonds are made out to the bearer; however, physical delivery to the buyer in reality is not possible.
- The difference between buy-sell quotations varies according to the liquidity and transaction volume of the bond.
- The standard value date is T+2 business days.
- The minimum transaction amount depends on the type of the Global Bonds.
- Investors may be exposed to different types of Taxes according to the taxation rules of issuer’s country.
- Customer demands in Global Bonds may not always be met.
- You may invest in Eurobonds through HSBC Bank Branches.