The Viewpoint - Indian Companies The ghost of bonds past - dealing with the FCCB redemption pressure

Bar & Bench February 7 2012

By Abhimanyu Bhattacharya and Aditya Cheriyan

The drone of convertible bonds: Sounds like a good deal

India was one of the fastest growing convertible bond markets during 2006-2007. Indian listed companies had issued FCCBs worth USD 20 billion by 2009. FCCBs are foreign currency denominated debt instrument with an option provided to the bond holders to convert such bonds into equity shares of the issuer at a pre-determined conversion price. FCCBs that have been issued are typically zero coupon but offered the potential upside of equities which made it an . . .

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