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|French to English translations [PRO]|
Bus/Financial - Finance (general)
|French term or phrase: Ora|
|Montages Financements Structurés, Titrisation d’actifs, Obligation Haut Rendement en Placement Privé, Obsar, Ora etc|
(What does Ora stand for?)
Financial Services Presentation
These are convertible bonds, i.e. bonds that are convertible to shares, as the name in French suggests.
An "equity note" is actually something entirely different, and usually referred to as an equity-linked note. However, different markets call these by different names, therefore it is possible that some people call convertible bonds "equity notes", though I personally have never.
Investor Words' definition of a convertible bond:
A corporate bond, usually a junior debenture, that can be exchanged, at the option of the holder, for a specific number of shares of the company's preferred stock or common stock. Convertibility affects the performance of the bond in certain ways. First and foremost, convertible bonds tend to have lower interest rates than non-convertibles because they also accrue value as the price of the underlying stock rises. In this way, convertible bonds offer some of the benefits of both stocks and bonds. Convertibles earn interest even when the stock is trading down or sideways, but when the stock prices rise, the value of the convertible increases. Therefore, convertibles can offer protection against a decline in stock price. Because they are sold at a premium over the price of the stock, convertibles should be expected to earn that premium back in the first three or four years after purchase. In some cases, convertibles may be callable, at which point the yield will cease.
Investor Words defintion of an equity-linked note:
A debt instrument whose return on investment is tied to the equity markets. The return on equity-linked notes may be determined by a stock index, a basket of stocks, or a single stock. These securities are usually protected from negative performances in the base equity by guaranteeing a minimum redemption value.
As you can see, the two securities are quite different, so be careful of which one you choose!
From the Atos Origin link below:
The weighted-average number of shares excludes 3,657,000 million ORA bonds, redeemable in Atos Origin ordinary shares...
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Domaine(s) : - finance
obligation remboursable en actions n. f.
Instrument d'emprunt prévoyant pour le débiteur la possibilité de rembourser son emprunt à échéance au moyen d'actions ou autres instruments de capitaux propres, ou encore au moyen du produit de la vente d'actions ou autres instruments de capitaux propres.
emprunt remboursable en actions n. m.
ORA n. f.
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