Eurobonds are a type of security issued in foreign currency and placed through underwriting banks among overseas investors. For the issuer, Eurobonds are a tool for raising overseas capital; for the investor, they are a means of direct capital placement abroad.
UniCredit Bank, in conjunction with its shareholders (Bayerische Hypo- und Vereinsbank — Bank Austria Creditanstalt), provides assistance to its corporate clients in arranging Eurobond issues. The HVB-BACA occupies a leading position in the markets of Central and Eastern Europe, and is one of the top underwriters for Eurobond issues from Moscow, Krakow, LOT Airlines, and the World Bank.
The main stages of a Eurobond issue are:
1. Assessment of requirements and potential, including:
- determining financing requirements
- determining the rating and credit margin
- selecting the issue lead manager
2. Preparatory stage:
- the lead manager elaborates the issue structure
- the lead manager sets up the syndicate
- the lead manager drafts the legal documents
3. Implementation:
- marketing strategy implementation
- determining the yield
- issue and placement
- support of the secondary market