Mezzanine, Pre-IPO & SPACs
What is the difference between detachable and non-detachable BWs?
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Among bonds with warrants (BWs), those whose bond and warrant (right to subscribe for new shares) can be separated and transferred independently are called detachable, and those that can only be transferred together are called non-detachable.
With a detachable BW, a separate warrant certificate is issued, so it is possible to sell the bond and keep only the warrant, or vice versa. The FSCMA prohibits stock-listed corporations from issuing, by private placement, bonds whose warrant certificates alone can be transferred, that is, detachable BWs, so listed companies can issue detachable BWs only through public offerings.
This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.