Preference shares are not secured against the assets of the business - however, the Eurobond would be.

If profits are poor, dividends do not have to be paid on the preference share - however, interest would need to be paid on the Eurobond.

The issue of the preference share would reduce the company's gearing - however, the Eurobond would increase it.

The company can claim tax relief on the dividend paid on the preference share at a higher rate than the interest paid on the Eurobond.