Definition
The term bulldog bond refers to an indenture issued in the United Kingdom, in British pound sterling, by a foreign bank or corporation. Bulldog bonds are issued when a foreign corporation wishes to raise capital from investors located in the United Kingdom.
Explanation
Foreign corporations that wish to raise funds in the United Kingdom have the option of issuing what are known as bulldog bonds. This is typically done when the interest rates in the U.K. are low relative to the foreign corporation's domestic interest rates. Issuing a bulldog bond lowers their interest expense. These bonds are also attractive to investors wishing to geographically diversify their portfolios.
Bulldog bonds are usually issued in pound-sterling denominations by a foreign (non-British) corporation or government. The term "bulldog" is a reference to the animal that serves as a national symbol in England, which was first associated with Winston Churchill during World War II.
Related Terms
The term kangaroo bond refers to an indenture issued in Australia, in Australian dollars, by a foreign bank or corporation. Kangaroo bonds are issued when a corporation wishes to raise capital from investors located in Australia.
Moneyzine EditorJanuary 23rd, 2024
The term maple bond refers to an indenture issued in Canada, in Canadian dollars, by a foreign bank or corporation. Maple bonds are issued when a corporation wishes to raise capital from investors located in Canada.Moneyzine EditorJanuary 24th, 2024- The term samurai bond refers to an indenture issued in Japan, in Japanese yen, by a foreign bank or corporation. Samurai bonds are issued when a corporation wishes to raise capital from investors located in Japan.Moneyzine EditorSeptember 21st, 2023
The term matrioshka bond refers to an indenture issued in the Russian Federation, in Russian ruble, by a foreign bank or corporation. Matrioshka bonds are issued when a corporation wishes to raise capital from investors located in the Russian Federation.Moneyzine EditorFebruary 8th, 2024- The term panda bond refers to an indenture issued in China, in Chinese renminbi, by a foreign bank or corporation. Panda bonds are issued when a corporation wishes to raise capital from investors located in China.Moneyzine EditorSeptember 20th, 2023
