What is a prospectus?

A prospectus is a substantial legal document related to a Eurobond. The prospectus details the structural, legal and characteristics of the bond, financial information about the issuer

What are covenants?

During the life of a Eurobond certain things may change for the issuer. For example, an issuer may acquire another company or be taken offer themselves, the balance sheets may change in structure or collateral claims may be reorganised.

To clearly mention the limitations and restrictions for an issuer in relation to the Eurobond and how and when thresholds are triggered a legal document accompanies a Eurobond when issued. This document is called a “covenant”.