Explainer: What is a Eurobond and how does it affect Wanjiku?

First, it does not necessarily mean that the bond is issued in Europe or uses in the euro currency. So, a Eurobond is a financing tool issued in a foreign currency outside the borders of the country borrowing.
For instance, the Kenyan bond has been issued to investors across Europe and the US and is denominated in US dollars.
A bond is simply a promise that an investor will be repaid their debt (loan made to the borrower) at a future date and at a particular interest rate.
This type of financing does not necessarily require security and that is why only governments with a good credit record and low risk of default succeed to raise money by this method.

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