Regulatory Alerts2023-02-01
Risks associated with issues of convertible bonds and equivalent equity lines by listed companies in need of financing
The Belgian Financial Services and Markets Authority (FSMA) issues this warning regarding the increasing use of convertible bonds and equity lines by listed companies in financial difficulty. The regulator highlights significant risks for existing shareholders, including severe dilution and downward pressure on share prices resulting from conversions at discounts to market value. The document outlines specific compliance obligations for issuers, such as detailed reporting and timely transparency notifications, while cautioning financiers against market manipulation and reminding them of their reporting duties.
Share