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 ?
And in foreign currency, Board sanctioned increasing funds upto USD 9 Million, with the issue of Foreign Currency Convertible Bonds (FCCBs) convertible into equity shares.
Funds raised through foreign sources like American and global depository receipts ( ADRs/ GDRs), foreign currency convertible bonds ( FCCBs), bonds and syndicated loans added up to ` 1.
The improved liquidity scenario and the enhanced cash flows in the near term should partly mitigate the refinancing risks faced from foreign currency convertible bonds, outstanding on the books of many Indian pharmaceutical companies, the analysts noted.
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).
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.
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).
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.
65 lakh crore, while foreign sources like equities, foreign currency convertible bonds and syndicated loans amounted to `1.
At present, the company s debt amount stands at more than Rs 13,000 crore, which includes Foreign Currency Convertible Bonds obligations.
5 crore but remained invested through foreign currency convertible bonds ( FCCB).
According to the official, of 37 per cent, which Maran is expected to buy, 25 per cent will come from the share- holding of Ross, who holds foreign currency convertible bonds ( FCCBs) in the firm.
It would be paid back through foreign currency convertible bonds ( FCCBs) and warrants.
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