Eurobonds are issued abroad by companies or the states. They are long term bills (typical maturities are 5-30 years) denominated in a currency other than that of the issuer's country. Eurobond's intensive currency export is made with American Dolar and Euro. Eurobond coupon rates can be fixed of variable. Coupons are paid out once a year or every 6 months.
Although generally issued for long term, the Eurobond can be realized at any time prior to the maturity date. The clearing and depository of Eurobonds are carried out at Clearstream Luxembourg and Euroclear Belgium. Therefore there is no physical delivery of Eurobonds. The standard value date is the transaction date plus three business days.
The minimum purchase of a Eurobond is USD/EUR 1,000 thereon after purchases are to be made in multiples of 1,000. There are 2 prices of Eurobonds. The clean price is calculated excluding the accrued interest from last coupon payment date to the requested value payment date. The dirty price is calculated including the interest accured since the last coupon payment date.
Kibris Iktisatbank Ltd.'s system calculates the value of the Eurobonds using the dirty price method.