Exchangeable bond

Japanese

EB 債

Also known as

EB

Last reviewed

September 25, 2026

This is a draft, shown for review before publication.

An exchangeable bond (EB) is a bond that, if set conditions are met, is redeemed at maturity in shares of a company other than the issuer (the underlying shares) instead of cash equal to the face value. The investor is in the same position as having sold a put option on the underlying shares, and in return receives a higher coupon than on an ordinary bond.