CFM11070 - Understanding corporate finance: raising finance: longer-term borrowing: Eurobonds

ITA07/S987

바카라 사이트楨urobonds바카라 사이트� are a form of debt security, see CFM11140. They originated in the 1960s when borrowers wanted to raise US dollar finance free from US regulation. With time the market became enormous and issues are made in other currencies. Commercially, a Eurobond is simply a bond which is issued in a market that is different to the home market of the issuer. So, if a UK company wishes to borrow money in Europe, it might issue bonds in a non-sterling currency in the European market. Where, for instance a German company chooses to issue bonds in sterling in the UK market these would be called 바카라 사이트榖ulldog bonds바카라 사이트�.

These bonds are normally issued in bearer form (CFM11060), normally pay interest once a year, and normally have a life of five years or more. Typically they are held by a clearing house which maintains an electronic ledger of the beneficial owners.

Tax definition of a 바카라 사이트榪uoted Eurobond바카라 사이트�

바카라 사이트楺uoted Eurobond바카라 사이트� is a defined term for UK tax purposes and differs from the commercial understanding of the term 바카라 사이트楨urobond바카라 사이트�. The tax definition is in ITA07/S987 and is important in deciding whether tax should be deducted from any interest paid (see CFM75000 and SAIM9000).

A quoted Eurobond is a security issued by a company which carries a right to interest and is either:

  • Listed on a recognised stock exchange; or
  • Admitted to trading on a multilateral trading facility operated by a regulated recognised stock exchange.

In this context, a 바카라 사이트渞ecognised stock exchange바카라 사이트�, is defined in ITA07/S1005. Wherever the exchange is established, the essential requirement is that it is designated as such by the Commissioners for HMRC. For tables of recognised stock exchanges, follow this link.

A 바카라 사이트渞egulated recognised stock exchange바카라 사이트� is a recognised stock exchange that is regulated in the UK, the European Economic Area, or Gibraltar.

The definition of a 바카라 사이트渕ultilateral trading facility바카라 사이트� is derived from EU Regulation 600/2014, as set out in ITA07/S987(2)(b).