INTERNATIONAL

FINANCIAL
MARKETS
Eurobond Market
 The Eurobond Market
• Eurobond market is a bond or capital market which
funds are raised on a long-term basis via the
marketing of debt securities.
• Eurobonds are bonds denominated in a currency other
than that of the country in which they are issued.
Eurobonds are also called external bonds.
A Japanese Company may issue a euroyuan bonds in
the US.
Other special names of bonds:
• Euroyen bonds are yen denominated
bonds issued outside of Japan. Also
called as samurai bonds; Denominated in
• Eurosterling bonds are denominated in Chinese Yuan
sterling but are issued outside of the
United Kingdom. The eurosterling is
also called the europound;
• Eurodollar bonds pay in USD but are
issued outside of the United States.
Official International
Financial Institutions
Official International Financial Institutions

Since WWII, numerous international financial institutions

have been established. These international and regional
institutions fund development programs in Third World
countries, but their activities have yielded important
benefits for international private companies.
The World Bank Group
The World Bank Group is one of the world’s largest
sources of funding and knowledge for developing
countries.
 ORGANIZATIONS UNDER THE WORLD BANK GROUP

IBRD IDA
International Bank for International
Reconstruction and Development
Development Association

IFC MIGA ICSID

International Centre for
International Finance Multilateral Investment Settlement of Investment
Corporation Guarantee Agency Disputes
Regional Development Banks
The Regional Development Banks endeavors to foster the
economic and social development of their member nations.
RDBs are multilateral financial institutions that support low
and middle-income nations within their regions.

RDB usually refers to four institutions:

• African Development Bank (AfDB)
• Asian Development Bank (ADB)
• European Bank for Reconstruction and Development
(EBRD)
• Inter-American Development Bank (IDB)
African Development Bank (AfDB)
• Established in 1966, with its headquarters in Abidjan,
the capital of the Ivory Coast.
• AfDB membership totals 81 countries: 54 regional
(African) and 27 nonregional countries.
Asian Development Bank (ADB)
• Established in 1966, with its headquarters in
Mandaluyong, Metro Manila, Philippines.
• ADB membership totals 68 countries: 49 regional
(Asia and the Pacific) and 19 nonregional countries.
European Bank for Reconstruction and
Development (EBRD)
• Established in 1991, with its headquarters in London,
United Kingdom.
• EBRD is owned by 71 countries and two
intergovernmental institutions (the European Union
and the European Investment Bank ).
Inter-American Development Bank (IDB)

• Established in 1959, with its headquarters in

Washington, D.C., United States.
• The IDB has 48 member countries: 26 borrowing
members and 22 non-borrowing members, including
the United States, its largest stakeholder.