What is the Full form of FCCB? About FCCB

FCCB Full FormForeign Currency Convertible Bond or FCCB is, as the name suggests, a type of bond made in foreign currency. It is considered to be a special type of bond. FCCBs are issued in foreign currency or currencies different from the issuing company’s (the company which is asking for the bond) domestic currency. 

It has the features of a convertible bond, meaning that the issuing company can convert the bond into a value in the share market or cash in the same value. 

Hence, FCCBs are very attractive and advantageous to not only the issuing company but also the issuers. FCCBs are also important for MNCs (multinational corporations) and globalisation, as all global companies deal in foreign currencies. 

FCCBs are quasi-debt instruments, meaning that the repayment of it depends on future cash flow. These bonds are equity linked debt securities which are converted into depository receipts or equity after a specific period of time.