exchangeable bond


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Exchangeable Debt

A debt security that the holder may exchange, at a certain price, for common stock in the company other than the one that issued the debt security. The number of shares one receives for each security and the price one pays for those shares are determined when the exchangeable debt is issued. Most of the time, the common stock is in a subsidiary of the company that issued the exchangeable debt. Exchangeable debt is a low-risk investment, but it affords the investor a great amount of leeway because he/she can exchange it for another security with higher risk and a higher return. Exchangeable debt operates like a convertible bond; the main difference is the fact that in a convertible bond the common stock that one may buy is the stock of the company issuing the bond rather than that of a subsidiary.

exchangeable bond

A special type of convertible security that permits the holder to exchange the bond for shares of a company in which the issuer has an ownership position. An exchangeable bond differs from an ordinary convertible bond in that a convertible permits the holder to convert it into shares of stock of the issuer.
References in periodicals archive ?
Purchase the block of convert's stock into which the exchangeable bond is convertible, S.
the largest exchangeable bond ever issued by an unrated entity;
Abu Dhabi: Aabar Investments has issued debt of a e1/42 billion exchangeable bond with a creative structure that combines Aabar's reputation as a long-term investor with the financial strength of its parent, the International Petroleum Investment Company (IPIC).
In this case, NPI purchased the exchangeable bonds and had an option to receive cash by redeeming the bonds or to exchange them for Bellsystem24 shares.
When relying on forward-looking statements to make decisions with respect to our group, investors and others should carefully consider the foregoing factors and other uncertainties and events and should review the risk factors and other cautionary statements contained in the documents setting forth the terms and conditions of the Consent Solicitation (the "Consent Solicitation Statement"), the Exchangeable Bond Offer (the "Exchangeable Bond Offer Document") and the Note Offer (the "Note Offer Document").
In this case, Nikko Principal purchased the exchangeable bond issued by the subsidiary and had an option to receive cash by redeeming the bond or to exchange it for Bellsystem24 shares.
Profit before taxes are thus going to be higher than last year, even excluding the book gain arising from the partial settlement of the exchangeable bond.
Following the completion of the Offering, Eni will hold approximately 9% of Galp s share capital, of which 8% underlying the approximately 1,028 million exchangeable bond issued on 30 November 2012 and due on 30 November 2015 and approximately 1% subject to the right of first refusal exercisable by AEBV.
29% of the aggregate principal amount of Exchangeable Bonds outstanding, had been validly tendered and not validly withdrawn in the Exchangeable Bond Offer.
Islamabad, July 05, 2011 (Frontier Star): Referring to reports regarding Oil and Gas Development Company Limited ("OGDCL") Exchangeable Bond transaction published/ telecast in a section of print and electronic media during the recent past, a spokesman of the Privatisation Commission (PC) while clarifying the factual situation said that it was the intention of the Government of Pakistan ("GoP") to complete the transaction within the previous fiscal year, however, the international financial markets became extremely volatile towards the end of the fiscal year due to the Greece Crisis and weak economic data emerging from USA.
ISLAMABAD, July 04, 2011 (Balochistan Times): Referring to reports regarding Oil and Gas Development Company Limited (OGDCL) Exchangeable Bond transaction published/ telecast in a section of print and electronic media during the recent past, a spokesman of the Privatization Commission (PC) while clarifying the factual situation said that it was the intention of the Government of Pakistan (GoP) to complete the transaction within the previous fiscal year, however, the international financial markets became extremely volatile towards the end of the fiscal year due to the Greece Crisis and weak economic data emerging from USA.