A euroyen bond is a bond which is denominated by the Japanese yen, but is issued outside of Japan. These bonds, which fall under the eurobond category of bonds, make it possible for investors to invest Japanese yen in companies or governments outside of Japan and to earn interest in Japanese yen.
Euroyen bonds are typically issued by borrowers looking to tap the potential of investors who want to invest and earn interest in Japanese yen.
The first euroyen bonds were issued in the 1980s – a period of economic recession in Japan following its economic boom during the preceding decades. They enabled investors who held Japanese yen to invest that yen in companies and governments outside of Japan, popularizing the use of the yen as an international investment currency and helping to maintain demand for the yen.
Euroyen bonds are not to be confused with Samurai bonds (bonds issued in Japan by foreign borrowers and denominated by the Japanese yen), sushi bonds (bonds issued outside of Japan by Japanese borrowers and denominated by a currency outher than the Japanese yen) and Shogun bonds (bonds issued in Japan by foreign borrowers and denominated in currencies other than the yen).
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