Securities sold in the United States to public investors must be registered with the SEC, and a prospectus disclosing detailed financial information about the issuer must be provided and made available to prospective investors. This encourages foreign borrowers wishing to raise U.S. dollars to use

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The Eurobond market allows foreign borrowers to issue bonds in multiple currencies, including U.S. dollars, without needing to register with the SEC or provide a prospectus to U.S. investors. As a result, it is a popular choice for foreign borrowers seeking to raise U.S. dollars. Domestic markets and bearer bonds are not viable alternatives for foreign borrowers seeking to raise U.S. dollars without registering with the SEC.

Securities Sold in the United States to Public Investors Must