euro bonds

EUROBOND

M. Rizwan Qamar

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 Rules

Trading Payment Listing Taxation

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

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