What is a Bond?

A bond is an IOU issued by the government, local authority, or company in return

for the loan from an investor. In most cases, a fixed rate of interest is payable to
the bond holder (the investor), and the bond issuer promises to pay back the
amount paid (the face value of the bond) at a certain time in future.

What is a Eurobond?
The term Eurobond is synonymous with External bonds and refers to bonds
issued by a govern,ent or company outside the nation of the issuer, usually
denominated in the currency of the purchaser. Hence, it refers to bonds that are
offered outside the country of the borrower and outside the country in whose
securities are denominated
The Eurobond market is entirely free of official regulation and is self-regulated by
the Association of International Bond Dealers.
Borrowers in the Eurobond market are typically well known and have impeccable
credit ratings (for example, developed countries, international institutions, and large
MNCs). The Eurobond market has grown rapidly in the last two decades, and it
exceeds the Eurocurrency market in size.
Features of a Eurobond

Has Tanzania Issued any Eurobonds?

Tanzania is currently in the process of acquiring rating from one of the three credit
rating agencies (standard and poors, moodies and fitch) as a pre requisite to issuing
a Eurobond overseas so as to
The government is planning to borrow much as 800 million US dollars through a
sovereign Eurobond to fund key infrastructure projects in the wake of declining
sources of grants and concessional loans

Advantages of Eurobonds for Investors

Advantages of Eurobonds for Issuers