Difference between FCCB and FCEB The Foreign Currency Convertible Bonds



Posted on 14-05-2016        By ADMIN



Difference between FCCB and FCEB The Foreign Currency Convertible Bonds (FCCBs) 

are unsecured, carry a fixed rate of interest and an option for conversion into a fixed number of equity shares of the issuer company.

 Foreign Currency Exchangeable Bonds (FCEB)  is a bond expressed in the foreign currency, exchangeable into equity shares of another company, being offered company which is an Indian company either wholly or partly or on the basis of any equity related warrants attached to debt instruments. 

There is a fundamental difference between an FCCB and an FCEB whereby in the case of an FCCB offering, the bonds converted into shares of that company that issued the bonds, while in the case of FCEB offering , the bonds are convertible into share not of the issuer company, but that of another company forming part of the group. 



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