Foreign Currency Convertible Bond


Also found in: Acronyms.

Foreign Currency Convertible Bond

A convertible bond that is issued in a currency other than the issuer's own. A company may issue an FCCB if it intends to make a large investment in a country using that foreign currency. For example, when an American company issues a convertible bond in euros because it intends to build a factory in Germany, this is a foreign currency convertible bond. Like all convertible bonds, an FSSB is a bond that a bondholder may exchange, at a certain price, for common stock in the company issuing the bond. The number of shares one receives for each bond and the price one pays for those shares are determined when the convertible bond is issued. This allows bondholders to take advantage of both the low risk of a bond and the potential price appreciation of the underlying stock. The FCCB also reduces the foreign exchange risk for the issuer.
References in periodicals archive ?
MUMBAI, India, February 22, 2010 /PRNewswire/ -- QVT Advisors Private Limited ("QVT") today said it supports on a without prejudice basis the restructuring plan proposed on behalf of the holders of the USD 110 million Foreign Currency Convertible Bonds ("Defaulted Bonds") of Wockhardt Limited (the "Company" or "Wockhardt") and submitted to the Corporate Debt Restructuring ("CDR") Cell, CDR lenders and the Company.
Of the total debt of $ 735mn ( of which $ 700mn is in foreign currency), repayment of $ 140mn worth of foreign currency convertible bonds is due in October 2009.
07 lakh crore had come from foreign sources, including initial and follow- on public offerings, qualified institutional placements ( QIPs), bonds, external commercial borrowings ( ECBs) and foreign currency convertible bonds ( FCCBs).
At present, the company s debt amount stands at more than Rs 13,000 crore, which includes Foreign Currency Convertible Bonds obligations.
a global scientific and engineering software solutions provider, today announced the closure of its EUR 42 million offering of unsecured foreign currency convertible bonds (FCCBs).
Also, sanction was granted to a Mumbai-based pharmaceutical firm njaneya Lifecare Limited to issue Foreign Currency Convertible Bonds to eligible foreign investors amounting Rs.
This was so because the total FDI will take into account the stakes held by Non-Resident Indians, American and global depository receipts, foreign currency convertible bonds and convertible preference shares.
MUMBAI, India -- Prajay Engineers Syndicate, a leading Hyderabad-based construction company, with presence across residential, commercial and hospitality, has raised US $60 million by way of a Foreign Currency Convertible Bonds issue in the international markets.
9 billion is raised by the via external commercial borrowing (ECB) and foreign currency convertible bonds (FCCB) in June to fund modernisation, foreign acquisition, importing of capital goods and refinancing of old loans, compared to $1.
Full browser ?