Document background
A Compulsory Convertible Debentures Agreement is utilized when companies seek to raise capital while offering investors a guaranteed conversion to equity. This document, governed by Singapore law, establishes the framework for issuing convertible debt instruments that automatically convert to equity shares at predetermined terms. It includes essential provisions regarding interest payments, conversion ratios, timing, and security arrangements. The agreement must comply with Singapore's robust regulatory framework, including the Companies Act and MAS guidelines, making it particularly suitable for companies seeking structured financing solutions while ensuring future equity participation for investors.
