Advantages: The overseas bond market is huge, and issuing bonds can help enterprises broaden financing channels and reduce financing costs. Moreover, the market interest rate of overseas bonds is lower than that of domestic bonds, and enterprises can obtain lower financing costs by issuing overseas bonds.
Pros and cons: Enterprises need to face foreign exchange risks when issuing bonds abroad. If the local currency depreciates, enterprises need to pay more local currency to repay their debts, which increases the debt risk.