TAILIEUCHUNG - Lecture International finance: An analytical approach (2/e) – Chapter 16: International long-term financing

The goals of this chapter are: To describe international bank loan financing, to distinguish between eurobonds and foreign bonds, to describe international equity markets, to outline other means of international long-term financing. | Chapter 16 International Long-Term Financing Objectives To describe international bank loan financing. To distinguish between Eurobonds and foreign bonds. To describe international equity markets. To outline other means of international long-term financing. International Bank Loans Foreign loans Euroloans Foreign Loans Foreign loans are raised by borrowers who are foreign to the country where the loans are raised. Euroloans Euroloans are denominated in currencies other than the currency of the country in which the loans are raised. Syndicated Loans Syndicated loans (Euro or foreign) are so large that it becomes necessary to form a syndicate or a group of lending banks to finance the loans. The interest charged is a reference rate plus a spread. Determinants of the Spread Availability of funds Creditworthiness of borrowers Maturity Fees Eurobonds Eurobonds are placed (sold) in countries other than the country in whose currency the issue is denominated. Foreign Bonds Foreign bonds are issued by borrowers who are foreign to the country where the bonds are placed. The bonds are denominated in the country’s currency. Nicknames of Foreign Bonds Yankee bonds (United States) Samurai bonds (Japan) Bulldogs (United Kingdom) Matilda bonds (Australia) Reasons for the Emergence of the Eurobond Market Absence of regulatory interference Less stringent disclosure requirements Favourable tax status Types of International Bonds Straight fixed-rate bonds Floating rate notes Convertible bonds Bonds with equity warrants Types of International Bonds (cont.) Zero-coupon bonds Multicurrency bonds Global bonds Novel bonds Choice of Currency of Denomination Choose foreign bonds if: International Equity Financing Primary market functions: underwriting of new equity issues. Secondary market functions: trading of equities abroad. Reasons for Listing on Foreign Stock Exchanges To improve the liquidity of existing shares To boost political and commercial visibility in foreign countries To .

• Tài chính doanh nghiệp
• International Finance
• Lecture International finance
• Tài chính quốc tế
• Bài giảng Tài chính quốc tế
• International long term financing
• Foreign bonds
• International monetary system
• Exchange rate arrangements
• Eurocurrency market
• International banking
• Internal financing
• International short term financing
• Foreign direct investment
• International capital budgeting
• International bank loans
• Financial analysis
• Financial management
• Lecture Introduction to finance
• Financial markets
• International trade
• International business firms
• Financial manager
• Bond investment
• Equity investment
• International arbitrage
• Multipoint arbitrage
• Basel accords