Encyclopedia

Convertible Loan Agreement


A convertible loan agreement is a loan agreement that provides the lender with the right, instead of repaying the entire or part of the loan amount and paying all or part of the interest for the use of the loan upon the occurrence of the term and (or) other circumstances provided for in this agreement, to require the borrower, which is a non-public company, to issue additional shares of a specified category (type) to the lender1.

  1. Federal Law No. 208-FZ of December 26, 1995 "On Joint Stock Companies", as amended on March 1, 2025, Article 32.3, paragraph 1 // Official Gazette of the Russian Federation. 1996. No. 1. Item 1. ↩

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