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The Convertible Bond Agreement is commonly used in Singapore when companies seek to raise capital while offering investors the potential upside of equity participation. This hybrid instrument combines features of debt and equity, making it particularly attractive for growth-stage companies and investors seeking flexible investment terms. The agreement must comply with Singapore's robust regulatory framework, including the Securities and Futures Act and MAS guidelines. It typically includes detailed provisions on conversion mechanics, valuation methods, investor rights, and company obligations, while addressing specific Singapore law requirements regarding securities issuance and corporate governance.
