What is a convertible loan?

A convertible loan, also known as a convertible bond, is a special type of bond that gives the holder the right, but not the obligation, to convert the bond into a certain number of shares in the issuing company at a predetermined ratio. In other words, a convertible bond gives the holder the option to convert the bond into shares, usually at a predetermined conversion rate.

All FAQs Published at: 2024-02-05