What it is
An exchangeable bond lets holders swap it for existing shares held by the issuer at a set exchange price. Unlike a convertible bond, no new shares are issued: the company hands over treasury shares or its stake in another company.
Why companies use it
It lowers borrowing costs and works as a deferred sale of a stake the company already holds, without increasing the share count.
What to keep in mind
When treasury shares back the bond, shares that could have been cancelled return to the market, which is controversial for minority shareholders. Check the underlying shares, exchange price and exchange period.
Where to check it
An exchangeable bond issue is filed as a material disclosure with the underlying shares, exchange price and claim period. The treasury shares used already exist, so no new stock is created, but the free float rises when the exchange happens. We list these alongside convertible bonds and warrants.
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This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.