A type of convertible bond issued in a currency different than the issuer's domestic currency.
A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock
These bonds are attractive to both investors and issuers. The investors receive the safety of guaranteed payments on the bond and are also able to take advantage of any large price appreciation in the company's stock.
Bondholders take advantage of this appreciation by means warrants attached to the bonds, which are activated when the price of the stock reaches a certain point. Due to the equity side of the bond, which adds value, the coupon payments on the bond are lower for the company, thereby reducing its debt-financing costs
Is negotiable certificate issued in USA for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale in US only through the various bank branches of the depository bank, which purchases shares of foreign companies and deposits it on the account.
ADS - certificate issued by a US bank representing a specified number of shares in a foreign stock that is traded on a U.S. exchange
Ratio 1:5- One certificate means holding of 5 shares
ADRs are denominated in US$ with the underlying security held by a US financial institution overseas
ADRs reduce administration and duty costs that would otherwise be levied on each transaction
ADRs do not eliminate the Forex, Economic and Political Risks
Dividend payments in Yen would be converted into US$ net of conversion expenses and foreign taxes and in accordance with the deposit agreement
Is a certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank in the country of the offering. The shares trade as domestic shares, but are offered for sale globally
GDRs facilitate trade of shares, and are commonly used to invest in companies from developing or emerging markets.
International banks issue GDRs, such as JPMorgan Chase, Citigroup, Deutsche Bank, Bank of New York. They trade on the International Order Book (IOB) of the London Stock Exchange. Normally 1 GDR = 10 Shares, but not always