Celebrating 60 years of the Eurobond market
The Eurobond market is celebrating its 60th anniversary this year. Eurobonds have played an essential role in facilitating cross-border capital flow and fostering economic integration across nations.
The emergence of Eurobonds
In 1963, the first Eurobond was issued by Autostrade, marking the beginning of a new era in international finance. Eurobonds were initially issued in currencies other than the issuer’s domestic currency – allowing global investors to participate and facilitating capital mobility.
Among the largest fixed-income segments globally
The international Eurobond market is jointly operated by the two ICSDs. Over the years, it has grown exponentially to become a large, diversified, multi-currency and multi-instrument international securities market. Today, it appears to be the largest fixed-income market in Europe and third largest in the world.
One-stop shop offering for both issuers and investors
Clearstream provides a fully integrated Eurobonds business model ranging from (pre-)issuance services including securities numbering and core CSD functions, such as notary, central maintenance and settlement, to value added services, such as securities financing and asset servicing. For its investor clients, Clearstream offers state-of-the art Eurobonds custody and settlement services supported by a mix of connectivity solutions.
Key benefits
The market offers specific benefits for issuers and investors, including:
- Efficiency gains
- High liquidity and low funding costs
- Multicurrency solutions
- A wide range of debt instruments
- Access to global investor base
- The ability to raise an issuers’ international profile
- A short and safe custody chain
The key advantages of the Eurobond market compared to domestic bond markets for issuers are scale, flexibility and reach.
Did you know?
In 1963, the Luxembourg Stock Exchange was the first in the world to list Eurobonds. To mark this occasion, Philip Brown, CEO of Clearstream Banking S.A., took the stage and illustrated the history of the Eurobond market in an interview with Julie Becker, CEO of LuxSE, at the Stock Exchange Day 2023.