A bond that carries fixed coupon (interest payment) and the right (embodied in a warrant) entitling the bearer of the bond, after the passage of a specific period of time, to purchase specific number of shares in the issuing company (a joint-stock company) at a preset price. A warrant-linked bond is a fixed-interest bond combined with an attached warrant. The issuer of the warrant (on its stock) is the same company issuing the underlying bond.
A bondholder, equipped with the right to exercise on an issuer’s stock (the warrant), can buy a specific number of common shares of the issuer under terms and conditions set out in the bond issuance plan.
