Foreign currency convertible bonds (FCCBs) are bonds that can be converted into equity at maturity. FCCBs are an equity bull market instrument. If the share price of the issuer has fallen since the issue, the investor can ask, instead, for redemption of the bonds in cash. From the ...
FCCBs are generally issued by companies in the currency of those countries where interest rates are usually lower than the home country, or the foreign country’s economy is more stable than the home country’s economy. FCCB holders may choose to convert the bonds into equity to benefit from ...
Foreign currency convertible bonds are typically issued by multinational companies operating in a global space and looking to raise capital in foreign currencies. FCCB investors are usually hedge fund arbitrators and foreign nationals. These bonds can be issued along with acall option(whereby the right...
The FCCB quandary ; When the stock market was booming, dozens of Indian companies issued foreign currency convertible bonds (FCCBs) to raise cheap capital... Foreign currency convertible bonds (FCCBs) are bonds that can be converted into equity at maturity. FCCBs are an equity bull market ins...
5. Offered Company : The Offered Company shall be a listed company, which is engaged in a sector eligible to receive Foreign Direct Investment and eligible to issue or avail of Foreign Currency Convertible Bond (FCCB) or External Commercial Borrowings (ECB). ...
FCCBs can be issued by Indian companies in the overseas market in accordance with Scheme for Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993. The FCCB issue needs to conform to External Commercial Borrowing guidelines, issued by RBI...
As per the RBI's report FCCB redemptions are set to peak in June 2012 when over $1.1 billion of bonds will mature. The Foreign Currency Convertible Bonds are issued by the companies in case when it needs a great amount of fund on low coupon rate. But presently FCCBs bonds of many ...
FCCBfinancial marketsborrowingeconomic downturnForeign Currency Convertible BondFCCBcapital marketsRBIIn the post market liberalisation era in the 1990s, Indian corporates required foreign capital to fuse with the globalised market. The Indian Central Government and Central Bank - the Reserve Bank of India...
This paper deals with the popularity of Indian foreign currency convertible bonds (FCCB) among foreign investors in 2004. Several Indian FCCB issued early this year are trading at a discount in the secondary market. A 100 million dollar convertible offering by Indian pharmaceutical company Wockhardt ...
The FCCB quandary ; When the stock market was booming, dozens of Indian companies issued foreign currency convertible bonds (FCCBs) to raise cheap capital. But with stock prices crashing and conversion coming up, they are in a soup.K.R. Balasubramanyam...