exchangeable bond
A debt instrument which is exchangeable generally during a specified period of time into a number of listed ordinary shares of a company other than the issuer (or frequently, at the issuer's option, cash in lieu), which are normally held by the issuer when it issues the bonds. Exchangeable bonds are typically issued with a maturity of three to six years.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • exchangeable — Applies mainly to convertible securities ( convertible security). Means the issuer, if so stated, may substitute a convertible debenture for an existing convertible preferred with identical terms. Most often used when a corporation has an… …   Financial and business terms

  • exchangeable instrument — Applies mainly to convertible securities ( convertible security). bond or preferred stock that may be exchangeable into the common stock of a different public corporation. Bloomberg Financial Dictionary …   Financial and business terms

  • Exchangeable Bonds —    Similar to convertible bonds but not linked to the shares of the issuer. They can be exchanged for shares in another company, which the issuer may already own.    ► See also Convertible Bond …   Financial and business terms

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