Read Scenario below and answer the question:

Context/Scenario You and your team are part of the Treasury Risk Analysis Division (TRAD) in Austra Value Minerals (AVM), an imaginary name of an Australian producer and exporter of various grades of iron ore and coals. The main task of the TRAD is to (i) evaluate and measure various risks involved with its export markets (ii) advise TRAD's boss on FDI and possible sources of finance to support foreign investment and (iii) take appropriate strategies in managing foreign exchange (hereafter, FOREX) risk. TRAD's job was simple and straightforward until recently as China was the main importer of AVM's iron ore and coals, comprising almost 90% of its businesses. Since all invoicing to Chinese export was fixed in Chinese yuan, it virtually required no job from the TRAD on FDI analysis or the analysis of FOREX risk management strategy. However, things have gone upside down following the post COVID complex geo-political environment, Russia-Ukraine war, frequent policy changes at the government level and the recent bank failures (such as Silicon Valley Bank, Signature Bank and Credit Suisse...etc) making international financial markets excessively unstable and unpredictable. Today, the survival of AVM is heavily dependent on the TRAD's prudent analysis and faultless decision. The most relaxing2 department of AVM now has the most sleepless nights. TRAD's job has become even more complex as AVM lost the Chinese market completely due to deteriorating relationship between Australia and China. AVM desperately needs to find at least two markets (i.e., countries) to cover the businesses lost and fully relocate two subsidiaries from China to those new markets. To support the relocation and keep the business moving and growing in other markets, AVM needs to raise USD$700 million from eurocurrency markets, either through Eurobonds or eurocurrency loans. AVM is a AAA-rated company, which at least gives TRAD some relief that it may be able to issue Eurobonds or get syndicated eurocurrency loans from Eurobanks in two of the following financial markets: Dubai, London and Luxemburg, each of which is associated with some benefits and drawbacks. In addition, TRAD is aware that the recent bank failures, bank runs, and the resultant turbulent international financial markets may force the potential Eurobanks in the above markets to think twice and hence apply stringent debt conditions prior to approving AVM's eurocurrency loan application. TRAD's boss is also not sure whether Eurobonds would be a likely solution to this urgent financial need.

Question:

1. Eurocurrency loan or Eurobonds: After discussing the pros and cons of the three Eurocurrency markets (i.e., Dubai, London and Luxemburg) and two eurocurrency products (i.e., Eurocurrency loan and Eurobond) which two markets and product should AVM consider for raising USD$700 million in an environment of heightened volatility of international financial markets? Provide arguments in your favour.