What is EUROBOND?

Offshore issue of a corporate or government bond, usually a bearer bond. Typically issued in Luxembourg or Netherlands Antilles. Exists beyond the regulations of the issuing country. Uses a currency other than the issuer’s country. They cannot be traded in the US. Non-European institutions sell them in Europe but they are cleared and settled using Euroclear and CEDEL, European bank-owned clearing houses. Their norm is a fixed final maturity of 10 to 15 years, but some are perpetual. Known also as global bond.

More On This Topic



Link to This Definition
Did you find this definition of EUROBOND helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary