Definition
Foreign Currency Convertible Bond – A bond issued in a foreign currency (commonly US dollars) that can convert into the issuer's own equity shares at a pre-set conversion price, instead of being repaid in cash at maturity. Functions as debt on the balance sheet until conversion, at which point it quietly adds new shares outside of a normal rights issue or public offering — worth tracking separately from other dilution events since it can happen in small tranches across several quarters as bondholders exercise at their own discretion. Found In: Notes to Financial Statements (borrowings/subsequent events)