eurobond
C2Formal, technical
Definition
Meaning
A bond issued in a currency different from the currency of the country where it is issued.
A long-term debt instrument issued by a government, corporation, or financial institution, denominated in a currency other than that of the country where it is sold, typically to tap into international capital markets.
Linguistics
Semantic Notes
The 'euro-' prefix does not necessarily mean the bond is European. It is a historical term referring to bonds issued in the Eurocurrency market (currency deposited outside its country of origin).
Dialectal Variation
British vs American Usage
Differences
No significant difference in definition or usage. The term is standard in international finance in both dialects.
Connotations
Associated with sophisticated international finance, large corporations, and sovereign debt.
Frequency
Equally frequent in UK and US financial/business contexts.
Vocabulary
Collocations
Grammar
Valency Patterns
The company issued [OBJECT: a eurobond] in [ADVERBIAL: London] denominated in [OBJECT: US dollars].Investors are buying [OBJECT: eurobonds] to [CLAUSE: diversify their portfolios].Vocabulary
Synonyms
Neutral
Weak
Vocabulary
Antonyms
Usage
Context Usage
Business
Crucial in corporate finance and investment banking for raising capital internationally.
Academic
Used in economics and finance papers discussing international capital flows and debt instruments.
Everyday
Virtually never used; exclusive to financial news and professional contexts.
Technical
Precise term in fixed-income markets, with specific legal and regulatory frameworks for issuance.
Examples
By Part of Speech
verb
British English
- The firm is looking to eurobond its next round of infrastructure financing.
- They eurobonded successfully last quarter.
American English
- The corporation plans to eurobond its refinancing needs.
- Several emerging markets have eurobonded in recent years.
adjective
British English
- The eurobond market saw record issuance.
- They specialised in eurobond trading.
American English
- The eurobond issuance was oversubscribed.
- He is a eurobond analyst.
Examples
By CEFR Level
- The company borrowed money from other countries by issuing a eurobond.
- To access cheaper capital, the government decided to issue a dollar-denominated eurobond.
- The surge in eurobond issuance reflects growing confidence among emerging market sovereigns in international capital markets.
Learning
Memory Aids
Mnemonic
Think of 'Euro' as in money outside its home country + 'bond' as a debt promise. A eurobond is a debt promise made in a foreign currency market.
Conceptual Metaphor
MONEY IS A LIQUID: Eurobonds allow capital to 'flow' across borders.
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating as 'еврооблигация' (which is correct) but confusing it with Russian domestic bonds like 'ОФЗ'. A eurobond is defined by currency, not the issuer's nationality.
- The 'euro-' part is misleading; it does not mean the bond is from Europe.
Common Mistakes
- Using 'eurobond' to refer to any bond issued in Europe (e.g., a German government bond in euros is not a eurobond if issued domestically).
- Pronouncing it as /ˈjɜːroʊˌbɑːnd/ (like 'Europe') instead of /ˈjʊəroʊˌbɑːnd/ (like 'eurocurrency').
Practice
Quiz
What primarily defines a eurobond?
FAQ
Frequently Asked Questions
No. The 'euro' prefix refers to the Eurocurrency market, not the euro currency. Eurobonds can be denominated in US dollars, yen, pounds, or any currency.
Governments, multinational corporations, and large financial institutions seeking to raise capital from international investors.
It allows issuers to tap into a larger, often more liquid, pool of international investors and potentially borrow at more favourable interest rates.
A foreign bond (e.g., a 'Samurai bond' in Japan) is issued by a foreign entity in the domestic market of a country and is subject to that country's regulations. A eurobond is issued in the international market outside the regulations of any single country.