Eurobond is an international bond that is issued in a currency different from the currency of the country or market where it is sold. It enables companies, governments, and financial institutions to raise capital from global investors while bypassing domestic financial constraints. Despite its name, Eurobonds are not limited to Europe ó they can be issued and traded anywhere in the world.

Definition:
A Eurobond is a type of debt instrument issued outside the jurisdiction of any single country, typically denominated in a major global currency such as the US dollar, euro, or yen. For example, a bond issued by an Indian company in the US dollar and sold in London is considered a Eurobond.

Key Features of Eurobonds:
- Currency Denomination: Issued in a foreign currency, making it accessible to a wide investor base.
- Issuance Location: Offered outside the home country of the issuer.
- Interest Payments: Typically paid annually and in the bondís currency of denomination.
- Bearer Form: Many Eurobonds are issued as bearer bonds, meaning ownership is transferred through physical possession.
- Global Market Access: Provides issuers with exposure to international investors and diversified funding sources.

Advantages:
Eurobonds allow issuers to access lower interest rates and broader capital markets. They help diversify funding sources and reduce dependency on domestic investors. For investors, Eurobonds provide opportunities for currency diversification and exposure to international issuers.

Example:
If a Japanese corporation issues bonds denominated in US dollars and sells them in Europe, those securities are classified as Eurobonds.

Conclusion:
In summary, a Eurobond is a flexible and globally recognized funding instrument that bridges international capital markets. It supports global financial integration by allowing issuers and investors to transact across borders efficiently, making it an essential component of international finance.