International and Domestic Bonds

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Category of Bonds

The bonds can be categorised based on the following characterstics:
1. Country of issue
2. Currency of denomination
3. Currency where it is sold. 

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                      ┌─────────────────────────┐
                      │       BOND TYPES        │
                      └─────────────┬───────────┘
                                    │
       ┌────────────────────────────┼───────────────────────────┐
       │                            │                           │
┌──────▼───────┐            ┌───────▼────────┐          ┌───────▼──────────┐
│  DOMESTIC    │            │   FOREIGN      │          │    EUROBOND      │
│ Local issuer │            │ Foreign issuer │          │ Any issuer,      │
│ Local market │            │ Local currency │          │ Currency ≠       │
│ Local curr.  │            │ (e.g. INR in   │          │ country issued   │
│ e.g. Indian  │            │ India by US    │          │ e.g. INR bond in │
│ firm → INR   │            │ firm)          │          │ EU               │
└──────────────┘            └────────────────┘          └──────────────────┘
                                    │
                                    │
                           ┌────────▼─────────┐
                           │     GLOBAL       │
                           │ Issued at once   │
                           │ in multiple      │
                           │ markets (multi-  │
                           │ listing)         │
                           │ e.g. World Bank  │
                           │ USD in US + EU   │
                           └──────────────────┘

Domestic Bonds

Issued by a local entity, denominated in local currency, and sold in the domestic market.

Foreign Bonds

Issued by a foreign entity, denominated in local currency, and sold in the domestic market.

Euro Bonds

Issued in a currency different from the currency of the country/market where it’s sold.

Global Bonds

Structured to be issued simultaneously in multiple markets, often in multiple currencies.

Sukuk Bonds

Sukuk are Islamic “bonds,” but they are not debt instruments in the conventional sense. Instead of paying fixed interest (forbidden under Sharia), they give investors a share in ownership of an underlying asset or project, and investors earn returns from the asset’s cash flows (like rent, profit, or service fees).

CouponStructures Legal Terms Related to Bonds