Convertible Bond
A hybrid financing instrument combining debt and option characteristics, allowing investors to convert their debt holdings into equity under specified conditions. It is commonly used during early-stage startup financing or pre-IPO funding rounds.
Timeline (last 90 days)
A convertible bond is a hybrid financing instrument with both debt and option characteristics, with core terms typically including coupon rate, conversion price, conversion trigger conditions, and maturity repayment terms.
Using convertible bonds before an IPO allows a company to quickly obtain large amounts of cash without immediately diluting existing equity or locking in a valuation.
The coupon rate of convertible bonds is generally lower than that of ordinary bonds, because the equity conversion right serves as compensation.
All Facts (3)
A convertible bond is a hybrid financing instrument with both debt and option characteristics, with core terms typically including coupon rate, conversion price, conversion trigger conditions, and maturity repayment terms.
50%UnverifiedUsing convertible bonds before an IPO allows a company to quickly obtain large amounts of cash without immediately diluting existing equity or locking in a valuation.
50%UnverifiedThe coupon rate of convertible bonds is generally lower than that of ordinary bonds, because the equity conversion right serves as compensation.
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