A debt instrument which is exchangeable generally during a specified period of time into a number of listed ordinary shares of a company other than the issuer (or frequently, at the issuer's option, cash in lieu), which are normally held by the issuer when it issues the bonds. Exchangeable bonds are typically issued with a maturity of three to six years.
Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.