A Eurodollar bond (foreign bond) that is issued by Japanese corporations on the Japanese bond market for Japanese investors. In other words, it is a foreign currency bond that is typically issued offshore by Japanese industrial firms and purchased by Japanese insurance companies at higher prices (lower interest rates) than other prospect buyers were prepared to pay. Therefore, a sushi bond characteristically involves Japanese firms on both side of the transaction.

A sushi bond is a good example of regulatory arbitrage which aims primarily to reduce regulatory burden on companies and allow them to compete more efficiently.