Bonds Issued by Foreign Entities

Many non-domiciled issuers may target foreign currency markets either to access alternative global investment capital or those markets that may appear to be more stable and predictable than their domestic currency. Note that foreign issuance is subject to strict local banking regulations.

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 for existing operations. Foreign issuer bonds can also be used to hedge foreign exchange rate risk. The table below lists some of the generic issuance “labels”:

Eurobond	A bond issued outside the issuer’s domestic market and jurisdiction
Eurodollar	USD bond issued by a non-US entity outside the US
Yankee	USD bond issued by a non-US entity in the local market
Maple	CAD bond issued by a non-Canadian entity in the local market
Samurai	JPY bond issued by a non-Japanese entity in the local market
Shogun	Non-JPY bond issued by a non-Japanese entity in the local market
Kangaroo	An AUD bond issued by a non-Australian entity in the local market
Panda	A Chinese renminbi bond issued by a non-Chinese entity in the Peoples Republic of China
Matrioshka	RUB bond issued by a non-Russian entity in the local market
Kimchi	Non-KWR bond issued by a non-Korean entity in the local market