Business, Legal & Accounting Glossary
A type of convertible bond that is purchased and distributes principle payments in a foreign currency. It also allows the option to convert the bond into stock. As long as the issuing company remains viable, this debt instrument is attractive for both the issuer and the bondholders. The company can usually obtain lower interest financing terms in exchange for the warrants which can dramatically add value to the bonds. This arrangement helps ensure that the bondholders will be compensated for their investment. It also allows them to take advantage of any significant increase in the company’s stock price.
FCCB
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This glossary post was last updated: 20th November, 2021 | 0 Views.