A debt instrument convertible generally during a specified period of time into several newly-issued listed ordinary shares of the issuer at a predetermined conversion price. The conversion period will frequently be from a date 40 days after the date of issue until a date just before any date fixed for redemption of the bond. For debt instruments that convert to equity on a regulatory trigger, see contingent convertible bond.

For more information on employment-related convertible bonds, see Practice note, Employment-related convertible securities.