Foreign Currency Convertible Bond (FCCB)is a foreign currency denominated convertible bond issued by an Indian company abroad, which the holder can convert into equity shares. It is a hybrid instrument (debt/ equity) issued to a borrower by corporate to obtain funds. At the termination time, the creditor has the right to convert the debt into equivalent value of equities (shares) at a set conversion rate. The FCCB is treated as a debt flow. A convertible bond is a bond that can be converted into equity at the time of its maturity.
