The wall parity of a tradable loan is the value of shares that can be converted to the underlying stock as a result of the exercise of a call option. Based on parity at the time of exchange, investors determine whether converting tradable bonds into core shares would be more profitable than suring the bonds at interest rate and face value maturity. Most of the time, the underlying entity is a subsidiary of the entity that issued the tradable debt. Exchanges must take place on a date and under specified conditions at the time of exposure. Convertible bonds (CL) and convertible bonds (CB) are the two most widely used convertible bonds by foreign investors in Vietnam. An issuer decides when a tradable loan is exchanged for shares, while the loan converts the bond into shares or cash with convertible debt when the loan matures. The increase in a share issue may also lead to an undervaluation of newly issued shares. Therefore, selling bonds with an interchangeable option may be a more advantageous alternative for issuers. Pending repayment of the tradable debt, the holding company or issuer is still entitled to the dividends paid by the underlying company. A tradable debt is a kind of hybrid bond that can be converted into shares of a company other than the issuing company (usually a subsidiary).
Companies issue tradable debt securities for a number of reasons, including tax savings and the sale of a significant interest in another entity or subsidiary. While convertible bonds can be diversified in international markets, cb and CL are the most widely used in the Vietnamese market. Exchangeable loans/loans (which can be exchanged for equity from a company other than the bond borrower/issuer) are found in some transactions, but are not as frequent. “Equity” refers to securities that are tradable or convertible at maturity and issued by the company. For the purposes of this communication, all securities are in all respects comparable to those issued by the Company to other investors. The same conditions apply to all securities participating in the satisfaction of this rating, with the same rights and privileges, expressly or otherwise, as those that would be offered to other investors in accordance with applicable laws. A company that wishes to sell or sell a large part of its interests in another entity may do so through tradable debts. A company that hastily sells its shares to another company may be viewed negatively in the market as a signal of a deterioration in financial health. IN WITNESS HEREOF, the company and holder executed the agreement on [Location] on [DATE]. In other words, the repayment of tradable debt depends on the performance of a separate entity, while the repayment of convertible bonds depends on the performance of the issuing entity.