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Microlesson · 5-min read

Samurai Bond and Bulldog Bond – Detailed Features

## Samurai Bond and Bulldog Bond

These are foreign bonds — bonds issued by a foreign entity in a domestic market, denominated in the domestic currency.

### Samurai Bond

FeatureDetail
CurrencyJapanese Yen (JPY)
Issued InTokyo, Japan
Regulated ByJapanese authorities
IssuerNon-Japanese company
Use of ProceedsFund Japanese operations OR company's local opportunities

### Bulldog Bond

FeatureDetail
CurrencyGreat Britain Pound (GBP)
Issued InLondon, UK
Regulated ByUK authorities
Use of ProceedsFund UK operations OR company's local opportunities

> Pattern recognition: The bond name reflects the host country's culture (Samurai = Japan, Bulldog = UK). The currency is always the host country's currency.

### Comparison: Foreign Bonds vs Eurobonds

FeatureForeign Bond (Samurai/Bulldog)Eurobond
CurrencyHost country's currencyAny currency (often not host country)
RegulationHost country regulationsLess regulated; international
MarketSingle domestic marketMultiple international markets

Worked example

### Example 1

Q: A US company issues bonds in London denominated in GBP. Classify and state two key features.

A: This is a Bulldog Bond.

Key features:

1. Denominated in British Pounds (GBP) – the host country's currency.

2. Regulated by UK (Great Britain) authorities.

The proceeds can be used to fund UK operations or the company's domestic (US) operations.

### Example 2

Q: Distinguish between Samurai Bond and Bulldog Bond.

A:

BasisSamurai BondBulldog Bond
CountryJapanUK
CurrencyJapanese YenBritish Pound
RegulationJapanese authoritiesUK authorities
IssuerNon-Japanese companyNon-UK company

⚠️ Common exam mistakes

  • Stating Bulldog bonds are Yen-denominated – Bulldog = GBP; Samurai = JPY.
  • Forgetting that these are issued by FOREIGN (non-domestic) companies in the respective countries.
  • Confusing 'use of proceeds' – proceeds can fund EITHER the host country operations OR the issuer's home country operations.
Reference:
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