Dragon Bond


DEFINITION of 'Dragon Bond'

A fixed income security issued by a firm in an Asian nation, other than Japan, which is denominated in a foreign currency, usually U.S. dollars. The purpose of a dragon bond is to attract funds from a larger market of foreign investors. A secondary reason for issuing dragon bonds is so the bond is denominated in a more stable currency.


Bonds denominated in foreign currencies are aimed at specific markets where investors are usually willing to lend money on more favorable terms than may be available to them domestically. Because of their international nature, dragon bonds can be complicated instruments when considering international taxation and regulatory compliance issues.

  1. Bond

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  2. International Bond

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  3. Eurobond

    A bond issued in a currency other than the currency of the country ...
  4. Yankee Bond

    A bond denominated in U.S. dollars that is publicly issued in ...
  5. Global Bond

    This type of bond can be traded in a domestic or European market. ...
  6. Foreign Bond

    A bond that is issued in a domestic market by a foreign entity, ...
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