Bonds issued in foreign currencies

Some companies, banks, governments, and other sovereign entities decide to create bonds in foreign currencies that appear to be more stable and predictable than their domestic currency. Issuing bonds denominated in foreign currencies also guarantee issuers the ability to access investment capital available in foreign markets.

Companies use the proceeds from the issuance of these bonds to break into foreign markets, or convert them into the issuing company's local currency and use them on existing operations through the use of foreign exchange swap hedges. Foreign issuer bonds can additionally be used to hedge foreign exchange rate risk.

Some foreign bonds have nicknames, such as the "samurai bond." which can be issued by foreign issuers looking to diversify their investor base away from domestic markets. However, note that not all of the following bonds are purchase restricted by investors in the market of issuance.

These bond issues are typically governed by the law of the market of issuance, e.g., a samurai bond issue, issued by an investor based in Europe, will be governed by Japanese law.



Eurodollar bond is a U.S. bond issued by a non-U.S. entity outside the U.S Kangaroo bond and it is dollar-denominated while an

Australian bond is issued by a non-Australian entity in the Australian market and is Australian dollar-denominated.

Maple bond, a Canadian bond issued by a non-Canadian entity in the Canadian market and is Canadian dollar-denominated.

Samurai bond, a Japanese bond issued by a non-Japanese entity in the Japanese market and is yen-denominated.

Shibosai Bond is a bond in Japanese market private placement with distribution limited to institutions and banks.

Yankee bond, a US bond issued by a non-US entity in the US market and is US dollar-denominated.

Shogun bond, a bond issued in Japan by a non-Japanese institution or government and is non-yen-denominated.

Bulldog bond, a bond issued in London by a foreign institution or government and is pound sterling-denominated.

Matrioshka bond, a Russian bond issued in the Russian Federation by non-Russian entities and is rouble-denominated. The name comes from the famous Russian wooden dolls, Matrioshka, common for foreign visitors to Russia.

Arirang bond, a bond issued by a non-Korean entity in the Korean market and is Korean won-denominated.

Kimchi bond, a bond issued by a non-Korean entity in the Korean market and is non-Korean won-denominated.

Formosa bond, a bond issued by a non-Taiwan entity in the Taiwan market and is non-New Taiwan Dollar-denominated.

Panda bond, a bond issued by a non-China entity in the People's Republic of China market and is Chinese renminbi-denominated.


   

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