What is a Dollar Bond?
Asian dollar bonds are a form of European bonds. Long-term bonds denominated in US dollars issued by a government, bank, or company on the Asian dollar market. Such bonds can be issued in small amounts, with low issuance costs, maturities of 9-15 years, and higher interest rates than fixed deposit rates. "Asian dollars" means foreign dollars deposited in international banks in the Asia-Pacific region. The Asian dollar in the broad sense also includes other freely convertible currencies besides the US dollar, which should be called "Asian currencies" exactly. However, because the US dollar accounts for more than 90% of the transaction value, it is called "Asian dollar". The Asian dollar is actually a component of the Eurodollar, and the Asian Dollar bond is just a manifestation of the Eurodollar bond. [1]
Asian dollar bonds
discuss
- Chinese name
- Asian dollar bonds
- Nature
- Long-term bond
- the term
- 9-15 years
- Nature
- A form of Eurodollar bonds
- Asian dollar bonds are a form of European bonds. Long-term bonds denominated in US dollars issued by a government, bank, or company on the Asian dollar market. Such bonds can be issued in small amounts, with low issuance costs, maturities of 9-15 years, and higher interest rates than fixed deposit rates. "Asian dollars" means foreign dollars deposited in international banks in the Asia-Pacific region. The Asian dollar in the broad sense also includes other freely convertible currencies besides the US dollar, which should be called "Asian currencies" exactly. However, because the US dollar accounts for more than 90% of the transaction value, it is called "Asian dollar". The Asian dollar is actually a component of the Eurodollar, and the Asian Dollar bond is just a manifestation of the Eurodollar bond. [1]
- Historical process
- This type of bond was first issued by the Singapore Development Bank in 1971. In the same year, Hong Kong Jardine International also issued $ 15 million in bonds, forming the original Asian dollar bond market. The issuing places are mainly Singapore and Hong Kong. The issuing institutions come from all over the world, and most of them are developing countries. However, the Asian dollar bond market initially developed slowly, with a total amount of only 2.23 billion US dollars, which accounted for a small proportion in the entire European bond market. After 1976, due to the Singapore government's active support for the development of the Asian dollar bond market, the Asian dollar bond market has become increasingly internationalized. At present, the market has become one of the international capital markets. In 1983, the World Bank began to enter the Asian dollar bond market, and internationally renowned bond issuers such as the European Investment Bank and Credit Lyon Bank also frequently issued Asian dollar bonds to raise funds.