A Eurobond is a bond issued in a currency other than the currency of the country in which it is issued. They are usually issued in more than one country of issue and traded across international financial centers. Supranational organizations (such as the World Bank or the European Bank for Reconstruction and Development) often use the the bonds for financing the development of emerging markets or to support developing countries. Corporations, including banks and multinational entities, issue Eurobonds for a number of purposes including financing for capital and other projects.
One example of a Eurobond is a eurodollar bond denominated in U.S. dollars and issued in Japan by an Australian company. The Australian company in this example could issue the eurodollar bond in any country other than the U.S.
Eurobonds give issuers the flexibility to choose the country in which to offer their bond according to the country's regulatory constraints. Eurobonds are attractive to investors because they have small par values are highly liquid.