This document discusses various sources for raising capital internationally through financial markets, including long term, medium term, and short term instruments. [1] Long term instruments include international equities like American or Global depository receipts that represent foreign portfolio equity investment and international bonds that are debt instruments issued by international agencies and companies. [2] Medium term instruments include Medium Term Euro Notes that provide medium term foreign currency funds. [3] Short term instruments include Euro Notes and Euro Commercial Papers that allow companies to obtain short term foreign currency funds with minimal documentation requirements.

1. ENTERPRENUAR
GOOD
GOVERNANCE
SOURCES OF
RAISING CAPITAL

2. Funds are raised from international financial market through
sale of securities such as
1.long term
2.medium term and
3.short term funds

3. LONG TERM INSTRUMENTS
1.INTERNATIONAL EQUITIES
International equities are a new instrument representing foreign
portfolio equity investment.
They are ordinary shares sold to international investors in the
form of American or Global depository receipts.
The investor gets dividend and not interest .
They do not have the same voting rights as in the case of foreign
direct investment return.

4. The benefits are:
a) The company issues international equities when the domestic
capital market s already flooded with its shares.
b) The presence of restrictions on issue of shares in the domestic
market facilitates issue of international equities.
c) Company issues international equity for gaining international
recognition among the public.
d) International equity bring in foreign exchange which is vital for
a firm in a developing country.

5. e) International capital is available at lower cost through
international equities.
f) Funds raised through such an instrument do not add to the
foreign exchange exposure.
g) It brings in diversification benefits and raise return with a
given risk or lower risk with a given

6. 2. INTERNATIONAL BONDS
They are debt instruments that are issued by international
agencies, government and companies for borrowing foreign
currency for a specified period of time.
The issuer pays interest to the creditor and makes repayment
of capital.
The different types of bonds are:
-Foreign bond
-Euro bond
-Global bond
-Straight bonds
-Convertible bonds

7. MEDIUM TERM INSTRUMENTS
MEDIUM TERM EURO NOTES
It is an extension of short term euro notes, which is issued to get
medium term funds in foreign currency.
They are not underwritten, but there is a provision for
underwriting.
They carry fixed rate of interest.

8. SHORT TERM INSTRUMENTS
These are two types
1. EURO NOTES
Euro notes are like promissory notes issued by companies for obtaining
short term funds.
They are denominated in any currency other than the currency of the
country where they are issued.
It is a low cost funding route.
The documentation facilities are minimum.
When issuer issues euro notes, it hires the service o agent who issues the
notes, gets them underwritten and sells them through placement agents.

9. 2.EURO COMMERCIAL PAPERS
They are short term fund instruments issued only by highly rated
companies.
They are not underwritten. It faces minimal documentation.
ECPs have longer maturity going u to one year.
The ECP route for raising funds is investor driven.

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