--%>

Procedure of bringing new international bond issue to market

Describe the procedure of bringing the new international bond issue to the market.

E

Expert

Verified

A borrower willing to raise funds by issuing the Eurobonds to the investing public may contact an investment banker and request it to serve as lead manager of an underwriting syndicate which will bring bonds to the market. Lead manager will generally requests other banks to form the managing group to help negotiate terms with the borrower, ascertain market conditions, and maintain the issuance.  Managing group, with other banks, may serve as an underwriter for the issue, which means they will commit their own capital in order to buy the issue from the borrower at the discount from the issue price.  Most of underwriters, with other banks, can be a part of selling group that sells bonds to the investing public.  Several members of underwriting syndicate receive a portion of the spread (generally within the range of 2 to 2.5 percent of the issue size), depending on the number and type of the functions they perform.  Lead manager receives the full spread, and the bank serving as only a member of selling group receives the smaller portion.

   Related Questions in Financial Accounting

  • Q : Average Profit Method in goodwill

    Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of

  • Q : Advantages and disadvantages of FDI

    State advantages and disadvantages of FDI as opposed to the licensing agreement with the foreign partner?

  • Q : Official reserve assets Describe the

    Describe the official reserve assets and some of its important components.

  • Q : Policy issued by upper management What

    What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?

  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

  • Q : Exchange rate changes decreases risk of

    Would exchange rate changes always raise the risk of the foreign investment? Explain some of the condition under which exchange rate changes can actually decrease the risk of foreign investment.

  • Q : Factors influencing real estate market

    What are the factors which influences real estate market?

  • Q : Closing entry for financial accounting

    A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet

  • Q : Whether MNC open their manufactoring

    For most global companies, China symbolizes a very attractive market in terms of size and growth-rate. Yet, it ranks lower in words of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite such risks

  • Q : Capitalization Method for Goodwill

    Capitalization Method: (Goodwill method): In this technique capitalized value of the firm is computed on the basis of normal rate of return. Difference between the capitalized value and real capital employed is termed as goodwill.