Bonds issued in foreign currencies
List of Bonds issued in foreign currencies:
Some companies, banks, governments, and other sovereign entities may decide to issue bonds in foreign currencies as it may appear to be more stable and predictable than their domestic currency. The proceeds from the issuance of these bonds can be used by companies to break into foreign markets, or can be converted into the issuing company’s local currency to be used on existing operations through the use of foreign exchange swap hedges. Foreign issuer bonds can also be used to hedge foreign exchange rate risk.
Some foreign issuer bonds are called by their nicknames, such as the “samurai bond.” These can be issued by foreign issuers looking to diversify their investor base away from domestic markets. These bond issues are generally governed by the law of the market of issuance, e.g., a samurai bond, issued by an investor based in Europe, will be governed by Japanese law.
* Eurodollar bond, a U.S. dollar-denominated bond issued by a non-U.S. entity outside the U.S
* Yankee bond, a US dollar-denominated bond issued by a non-US entity in the US market
* Kangaroo bond, an Australian dollar-denominated bond issued by a non-Australian entity in the Australian market
* Maple bond, a Canadian dollar-denominated bond issued by a non-Canadian entity in the Canadian market
* Samurai bond, a Japanese yen-denominated bond issued by a non-Japanese entity in the Japanese market
* Uridashi bond, a non-yen-demoninated bond sold to Japanese retail investors.
* Shibosai Bond is a private placement bond in Japanese market with distribution limited to institutions and banks.
* Shogun bond, a non-yen-denominated bond issued in Japan by a non-Japanese institution or government.
* Bulldog bond, a pound sterling-denominated bond issued in London by a foreign institution or government
* Matrioshka bond, a Russian rouble-denominated bond issued in the Russian Federation by non-Russian entities. The name derives from the famous Russian wooden dolls, Matrioshka, popular among foreign visitors to Russia
* Arirang bond, a Korean won-denominated bond issued by a non-Korean entity in the Korean market.
* Kimchi bond, a non-Korean won-denominated bond issued by a non-Korean entity in the Korean market.
* Formosa bond, a non-New Taiwan Dollar-denominated bond issued by a non-Taiwan entity in the Taiwan market
* Panda bond, a Chinese renminbi-denominated bond issued by a non-China entity in the People’s Republic of China market
* Dimsum bond, a Chinese renminbi-denominated bond issued by a Chinese entity in Hong Kong. Enables foreign investors forbidden from investing in Chinese corporate debt in mainland China to invest in and be exposed to Chinese currency in Hong Kong.
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