Definition of 'Eurodollar Bond'
A U.S.-dollar denominated bond issued by an overseas company and held in a foreign institution outside both the U.S. and the issuer's home nation. Eurodollar bonds are an important source of capital for multinational companies and foreign governments.
A eurodollar bond is a type of Eurobond.
Investopedia explains 'Eurodollar Bond'
Don't let the name confuse you! Although the eurodollar originated in London, the name today refers only to the history, not the currency.
For example, if a Chinese bank held dollar-denominated bonds issued by a Japanese company, this would be considered a eurodollar bond.
Eurodollar bonds are advantageous because they are subject to fewer regulatory restrictions. They are not registered with the United States' Securities and Exchange Commission and can be sold at lower interest rates than in the U.S.