Consider a hypothetical example of an investor holding 1 million yen of face value of a CB with a conversion price of 1,000 yen. The investor receives 1,000 shares on conversion. If the share price is above the conversion price, converting into shares is worth more than receiving the face value. The conversion price is set at issue, and some CBs carry clauses that lower or raise it at a set time after issue by a method set in advance. Some materials on exchangeable bonds (EB) also use the term conversion price for the price that decides whether an EB is redeemed in shares. That is a different price from the conversion price of a CB.
Conversion price
- Japanese
- 転換価額
- Last reviewed
- September 25, 2026
This is a draft, shown for review before publication.
The conversion price is the price per share used when a convertible bond (CB) is converted into shares. When you convert a CB into shares, you receive a number of shares equal to the face value divided by the conversion price.