Browse Investing

Currency-Linked and Special International Bonds

Dual-currency, Eurodollar, dim sum, exotic-currency, foreign-currency convertible, kiwi, sukuk, and special international bond terms.

Currency-linked and special international bonds have cash flows, legal structures, or investor markets shaped by currency choice, cross-border rules, or specialized financing conventions.

Use this branch when the bond label changes currency exposure, redemption mechanics, conversion terms, market access, or religious or legal structuring.

Key Terms in This Branch

TermWhat it clarifies
Dual-Currency BondA bond where coupon and principal may be paid in different currencies.
Eurodollar BondA U.S.-dollar bond issued outside the United States.
Dim Sum BondOffshore renminbi bond context.
Exotic-Currency BondA bond denominated in a less common or higher-friction currency.
Foreign Currency Convertible Bond (FCCB)A foreign-currency bond with equity conversion features.
Kiwi BondA New Zealand-linked bond term.
SukukSharia-compliant financial instruments often compared with bonds.

Common Mistakes

  • Comparing coupons without converting currency and inflation assumptions.
  • Ignoring convertibility, capital controls, withholding tax, and settlement risk.
  • Treating sukuk as identical to conventional debt without checking the asset and contract structure.
  • Assuming a foreign-currency convertible is driven only by credit risk, when equity and currency exposure also matter.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Dim Sum Bond

A dim sum bond is an offshore renminbi-denominated bond, commonly issued in Hong Kong for investors seeking RMB exposure.

Dual Currency Bond

A dual currency bond pays coupons and principal in different currencies, creating fixed-income returns with embedded foreign-exchange exposure.

Eurodollar Bond

A Eurodollar bond is a U.S.-dollar bond issued outside the United States, giving borrowers access to offshore dollar funding.

Exotic Currency Bond

An exotic currency bond is issued in a less commonly traded currency, adding currency risk to fixed-income exposure.

Kiwi Bond

Kiwi Bonds are government-backed securities offered directly to the public, exclusively available to New Zealand residents, providing a secure investment option.

Sukuk

Sukuk are Sharia-compliant certificates that provide ownership-linked cash flows rather than conventional interest-bearing debt claims.

Revised on Sunday, June 21, 2026