euro bonds
DESCRIPTION
TRANSCRIPT
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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