A conversion loan (also convertible bond) is spent by portion companies and is a loan, which grants the right to the owner to exchange it during one Wandlungsfrist to a before specified relationship in shares whereby with conversion the claim (interest and requirement for repayment) expires. If this possibility is not used, then the loan at the end of its running time of the emitter becomes (abw. v. emission) paid back.

Conversion loans are a comfortable product for the procurement of capital of corporations, since conversion loans are usually lower paid interest on contrary to normal enterprise loans.

The emitter of a conversion loan does not have to be identical to the corporation, serve their shares as base value for the conversion loan. For example a bank X could present a conversion loan on shares of an enterprise Y. One calls such loans also conversion loans.

Occasionally it occurs that a large shareholder (e.g. the state) wants to separate from portions of an enterprise, this however not over a direct placement of the shares at a stock exchange to make would like, but by presenting a conversion loan.

During the appointment of the transformation course an impact is taken into consideration on at the time of the loan emission the current share quotation from usually 20% to 30%.

Contrary to Optionsanleihen the changing option cannot be separated from the loan and acted separately with a conversion loan.

German right

Under the name convertible bond become in "§ 221 of the German law on limited companies the legal basic conditions for going a conversion loan by a corporation with the right the transformation in (according to dominant opinion only "„own shares "“; even if this in the law literally does not stand) evenly for this corporation described. If one follows this definition, then it applies only conditionally that convertible bond is equal to conversion loan, which can as down said, completely generally permit a transformation into arbitrary shares.

See also

• Loan
• Debenture bond
• Security
• Conversion loan
• Equity kicker

Related links

• Text of the German AktG
• Fish ate management materials, studies

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