Which of the following is the typical order of sourcing capital abroad?
A) an international bond issue, then cross-listing the outstanding issues on other exchanges, then an international bond issue in the target market
B) an international bond issue in the target market, then cross-listing the outstanding issues on other exchanges, then an international bond issue
C) an international bond issue in less prestigious markets, then an international bond issue in the target market, and ultimately a eurobond issue
D) cross-listing the outstanding issues on other exchanges, then an international bond issue, then an international bond issue in the target market

Question

Quizplus · Accepted Answer

C) is correct because it reflects a common strategy where companies first issue bonds in less prestigious or smaller markets to test the waters or build a reputation, then move on to issue bonds in their target or more prestigious markets, and finally issue a eurobond to access a wider international market.

Which of the Following Is the Typical Order of Sourcing