They differ from national investment assets in the issue procedure, taxation and purchase and sale regime. Putting bonds into circulation is associated with significant costs, therefore, it is economically justified to issue securities in the amount of more than $ 50 million.
Kinds
The generally accepted classification of international bonds contains several options for systematizing debt securities. Globally, investment instruments are divided into two categories:
Bonds. Long-term securities issued in a foreign currency for the issuer and placed through underwriters acting as intermediaries between investors and borrowers.
Notes. Personalized international bonds with medium-term placement, issued for a specific lender. The notes do not require collateral, therefore they are used to increase the profitability of options transactions, circumvent tax regimes and arbitration conditions.
According to the method of placement, I classify international bonds into:
Eurobonds (eurobonds). Investment assets that enter the markets of different countries in monetary units that are not national for the parties to the debt relationship. International financial syndicates are engaged in their placement.
Foreign bonds. They are brought by underwriters to the market of a particular state in its national currency. Global (global bonds). They are issued in different currencies and are placed on several markets at once. Global bonds allow the borrower to expand the base of potential investors and reduce the cost of future debt obligations.
Notes are characterized by “floating” interest rates for using the loan. (floating rate). Bonds are issued with a fixed rate, which may differ in the way they are credited and paid.
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