For the issuers, a CB provides cash without them having to relinquish much of their control or influence over the company - as they typically would have to if they had sold to private equity investors. Meanwhile, investors will get a guaranteed minimum rate of return on the bonds and at the same time will get to participate in the equity upside of the company before and sometimes also after the listing. Usually, the bonds will come with some form of guarantees or incentives to ensure that an...
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