Convertible Debentures

A convertible debenture is a long-term debt instrument that can transform into equity shares upon maturity. Typically unsecured, these loans are issued by small to mid-sized companies, offering investors interest payments in return. The conversion feature allows holders to benefit from potential stock price increases, blending debt security with equity upside. Unlike regular debentures, they carry no collateral, relying on the issuer’s creditworthiness. This makes them attractive for firms seeking flexible financing and investors eyeing both fixed income and growth potential.