What is Eurobond?

A Eurobond is a type of bond that is issued in a currency other than the currency of the country or market in which it is issued. In other words, a Eurobond is denominated in a currency that is different from the currency of the country where it is issued. The term "Euro" in Eurobond does not necessarily refer to the European Union; instead, it is a generic term indicating that the bond is issued internationally.
Eurobonds are typically issued by governments, financial institutions, or corporations to raise capital on the international market. These bonds provide issuers with access to a broader investor base and can be denominated in major currencies like the Euro, U.S. Dollar, Japanese Yen, or British Pound. Eurobonds are often traded on international exchanges, and they may offer benefits such as diversification and access to a more extensive pool of investors.
It's important to note that while the term "Eurobond" might suggest a connection to Europe, these bonds can be issued by entities from any part of the world. The name originated in the 1960s when the first Eurobonds were issued in European capital markets.