ANYONE meeting a dragon in the street would have no difficulty recognising it. On the bond market, identification is not so simple.
A dragon bond is an international bond issued and listed in the dragon economies of Hongkong, Singapore and Taiwan, and the issue of such instruments is being promoted heavily by the Asian Development Bank (ADB).
The ADB would like to see these centres develop bond markets of their own, instead of making local issuers and buyers turn to Tokyo, London or New York.
Equity-crazed punters may need reminding that a bond is an investment that gives a fixed return during its life. Investors can either wait until it matures, when they get their initial investment back, or trade it on at a price which can diverge substantially from its initial cost, especially if interest rates change.
Goldman Sachs announced on Monday a $200 million five-year dragon bond issue, later extended to $250 million, for the Nordic Investment Bank (NIB), traded in Hongkong, Singapore and London.
Mr Neo Que Yau, Goldman Sach's executive director of fixed income division, said the London listing was at NIB's request.