Explain the procedure of bringing a new international bond issue to market.
A borrower desiring to increase funds through issuing Eurobonds to the investing public will contact an investment banker and ask it to serve as lead manager of an underwriting syndicate which will bring the bonds to market. Usually the lead manager will invite other banks to make a managing group to help negotiate terms along with the borrower, ascertain market conditions, and manage the issuance. The managing group, along with other banks, will serve as underwriters for the issue that means they will commit their own capital to purchase the issue from the borrower at a discount from the issue price. Mostly underwriters, along with other banks, will be part of a selling group which sells the bonds to the investing public. The several members of the underwriting syndicate receive a portion of the spread (typically in the range of 2 to 2.5 % of the issue size), based upon the number and sort of functions they perform. The lead manager attains the full spread, and a bank serving as just a member of the selling group receives a smaller portion.