A Eurobond is a debt instrument that's denominated in a currency other than the home currency of the country or market in which it is issued. For example, a company might issue a Eurobond in euros even though its headquarters are located in the United States. This gives companies and governments an attractive way to raise money by tapping into global investor demand for higher-yielding debt securities.Eurobonds can be issued by either public or private sector borrowers, and they come with different maturities ranging from one year to 30 years. The interest rates on Eurobonds are typically higher than those on comparable domestic bonds due to their greater riskiness, but this also means they offer investors potentially higher returns.One downside of issuing Eurobonds is that they can be more expensive for borrowers to repay if the euro strengthens against their home currency. This was seen during the European sovereign debt crisis when countries like Greece had to pay back investors more money when their bonds were denominated in euros rather than local currencies like drachmas.
