History of the Eurobond market
It is generally accepted that the Eurobond market began with the Autostrade issue for the Italian motorway network in July 1963. It was for US$15m with a 15 year final maturity and an annual coupon of 5½%.  S G Warburg was the lead manager of the issue while the co-managers were Banque de Bruxelles, Deutsche Bank, and Rotterdamsche Bank.

The cross-border debt capital market continues to bring together borrowers and investors from all over the world and meets the funding needs of countries, supranational organisations, financial institutions and companies.

ICMA has under various names, the Association of International Bond Dealers, the International Primary Market Association and then as the International Securities Market Association, is very proud to have been at the centre of this market almost from its beginning.

History of the Eurobond Market
1963 First Fixed rate issue: Autostrade
1969 Launch of Association of International Bond Dealers (AIBD)
1969 Launch of Euromoney
1969 Euro-clear established (forerunner of Euroclear)
1970 Cedel established (forerunner of Clearstream)
1970 First Floating Rate Note: ENEL
1979 First bought deal: GMAC
1981 First swap: IBM/IBRD
1989 Fixed price reoffer introduced
1989 First global bond: World Bank
1992 Association of International Bond Dealers (AIBD) changes name to International Securities Market Association (ISMA)
1994 First CDS: Exxon/EBRD
1999 Pot deal introduced
1999 Euro introduced in 12 countries forming the Eurozone
2005 International Securities Market Association (ISMA) and International Primary Market Assocation (IPMA) merge to form International Capital Market Association (ICMA)
2007 Global credit crisis starts
2008 Lehman’s default
2010 European sovereign debt crisis starts
2013 50th Anniversary of the Eurobond Market

At an event in June 2013 organised by ICMA to celebrate the 50th anniversary the following eminent speakers delivered their perspectives on the growth and development of the market over five decades and its key role in financing economic growth.

Peter Spira

Peter Spira was one of Europe's most respected bankers having served as Vice Chairman of three of the world's most prestigious investment banks: SG Warburgs, Goldman Sachs International Corporation and County Natwest. He has served on the boards of several leading European companies including Sotheby's, as Group Finance Director and London Vice Chairman, and as a Non-Executive Director of Société Générale de Surveillance. He is a registered representative of AGI and works with the firm on an "ad hoc" basis.
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Stanley Ross

Stanley Ross started his career in 1950 at Strauss Turnbull, London. In 1963, he became a Member of the London Stock Exchange. In 1967, he joined Kidder Peabody New York and, in 1968, was one of the founders of the Association of International Bond Dealers (AIBD). In 1969, he was elected to the first board of Euroclear and the first board of the AIBD. From 1971 to 1978, he produced the first Eurobond newsletter ‘The Week in Eurobonds’. In 1972, he was elected Chairman of Kidder Peabody Securities and Kidder Peabody International. In 1978, he formed Ross & Partners where he defeated the AIBD board’s attempt to outlaw grey market trading; the practice became generally adopted. In 1984, Ross & Partners taken over by Drexel Burnham, New York and Ross became the first ever non-German Managing Director of the Deutsche Bank. From 1994 to 1997, he was Chairman of Tradepoint and Honorary President from 1997-1999.
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Eugene Rotberg
Eugene Rotberg was Vice President and Treasurer of the World Bank for 19 years with responsibility for its borrowing and investment operations. He later served as Executive Vice President of Merrill Lynch responsible for risk management. He also served for 11 years at the Securities and Exchange Commission as Associate Director for Market Regulation.
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Rupert Hambro
Rupert Hambro was Chairman of Hambros Bank until 1986 when he left to set up J O Hambro, a Mergers and Acquisitions and Investment Management business. He has his own private equity business and an advisory business, Hambro & Partners. He is a Chairman of a number of companies. He was previously a Director of Anglo American Corp of S.A., The Daily Telegraph Group and Sedgwick PLC. He is also Chairman of the Zoological Society of London Development & Strategy Board; Chairman of Trustees of The Silver Trust; Member of the Council of the Royal College of Art; Trustee of the Wallace Collection; and President of BAAF (British Association of Adoption & Fostering).
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Hans-Joerg Rudloff

Hans-Joerg Rudloff has been Chairman of the Investment Bank at Barclays since 1998. After joining Kidder Peabody International as Managing Director in 1968, he became Chairman and was elected to the board of Kidder Peabody Inc, New York, in 1978. In 1980, he moved to Credit Suisse First Boston, where he became Chairman and CEO in 1989. From 1995 to 1998, he was the Chairman of MC-BBL Eastern Europe. Currently he holds various board positions at companies including Rosneft Oil Company, New World Resources NV, Thyssen Bornemisza Group and is on the Advisory Board of Landeskreditbank Baden-Württemberg. He was formerly Vice Chairman of Novartis, Chairman of ICMA and Chairman of BlueBay Asset Management.
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Stanislas M Yassukovich CBE
Stanislas Yassukovich started in the City in 1961 with White, Weld & Co, becoming a general partner in the New York based firm and then a Managing Director of its UK subsidiary. In I976 he set up European Banking Company, a consortium bank, becoming eventually Deputy Chairman and CEO of European Banking Group. He then joined Merrill Lynch in 1986 as Chairman of Merrill Lynch Europe, Middle East & Africa. During that period, he served as Chairman of the Association of International Bond Dealers, the Securities & Futures Authority and Deputy Chairman of the London Stock Exchange. Since 1991, he has served as Chairman/Non Executive Director of a number of financial and industrial concerns. He is currently Chairman of Cayzer Continuation PCC Ltd and Manek Investment Management Limited.
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Sir David Walker
Sir David Walker has been Chairman of Barclays since November 2012. He began his career in 1961 with HM Treasury, where, with a period on secondment to the International Monetary Fund in Washington (1969-1973), he served until 1977. From 1977-1993, he held several key positions at the Bank of England. He was a Non-Executive Board member of the former CEGB and subsequently National Power plc, between 1984 and 1994. He joined Morgan Stanley in 1994, where he was Chairman and CEO, Morgan Stanley International, and subsequently Chairman. In 2005, he retired as Chairman but remained a Senior Advisor until 2012. Sir David has been a member of the Group of Thirty (G30) since 1993. Since 2007, he has completed reports on the private equity industry and corporate governance at financial institutions. He also co-led the independent review into the failure of RBS and was a member of the committee that investigated ethical business conduct in BAE Systems plc.
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Back row, left to right: Eugene Rotberg, Stanley Ross, Hans-Joerg Rudloff, Sir David Walker
Front row, left to right: Rupert Hambro, Peter Spira, Stanislas M Yassukovich CBE


Media Coverage


28 June 2013
Euroweek article "Mighty Eurobond market celebrates 50th anniversary"

8 July 2013

The Banker: The origins and future of the Eurobond market, interview with Tim Skeet, managing director at RBS

 

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