BANKING AFFAIRS

Detailed explanation-1: -foreign bond. Bond denominated in the local currency of the country where the bond is issued, issued by a foreign borrower, and registered for sale to investors in the country where it is issued. For example, a US dollar-denominated bond issued in the US market by an issuer that resides outside the United States.

Detailed explanation-2: -FCCB vs FCEB The key difference, therefore, is while FCCB involves just one company, FCEB involves at least two companies — the bonds are usually of the parent company while the shares are of the operating company which must be a listed company.

Detailed explanation-3: -A type of convertible bond issued in a currency different from the issuer’s domestic currency is known as a foreign currency convertible bond (FCCB). A convertible bond is a mix between an equity and debt instrument. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution.

Detailed explanation-4: -A foreign currency convertible bond (FCCB) is a convertible bond that is issued in foreign currency only, which means the principal repayment i.e., redemption amount and the periodic interest/coupon payments will be made in the very same foreign currency.