A foreign bond that is publicly floated in Japan and denominated in currency other than yen (hence it is called a Euro-yen bond). More specifically, a shogun bond is issued in Japan by a non-Japanese borrower. For example, a U.S. company may issue dollar-denominated bonds in Japan by the way of shogun bonds. The first public offering of shogun bonds was introduced in Tokyo in August 1985 by the World Bank, raising $300 million with the sale of 10 year bonds.

The bond’s name is originally derived from the Japanese word for the traditional military leader of the Japanese army. It is similar, in concept to a samurai bond, but differs from it in that shogun bonds are issued in foreign currency, while samurai bonds are denominated in yen.

This bond is also known as a geisha bond.