A convertible bond (CB) that can be called by the issuer any time over its life (time to maturity) or any time after a preset lock-up period, provided that specific conditions are met. The bond is embedded with a call option (known as a soft call) giving the right to the issuer to call it back, if the call trigger is breached and pay the bondholder an early redemption amount. Otherwise, the convertible bond cannot be called back and the bondholder cannot be compelled to convert it into shares.
It is also known as a soft-call convertible bond.
