
What is supranational bonds?
Supranational bonds are long-term debts that extend beyond the borders of a single nation. They are comparable to government bonds in that they have a significant effect on the amount. A good example of a supranational bond is the European Investment Bank, a long-term financing organization owned by the European Union's member states.
Supranational bonds are long-term, fixed-rate securities issued by the European Financial Stability Facility. The purpose of these securities is to provide Eurozone members with capital in order to stimulate the economy. Investors who purchase supranational bonds will be paid back with interest, once the conditions of the security have been met.
Oct 12, 2021 16:54