A bond tranche is a specific portion of a larger bond issue. Each tranche has its own terms and may be treated as a separate security.
- All tranches are typically governed by the same common terms specified in the base prospectus.
- Each tranche has its own issue date, amount, interest rate, and maturity date specified in the Final Terms.
- Individual tranches may have unique features (such as currency, call option terms, listing exchange) specified in the Final Terms.
Tranches enable bond issuers to adjust the timing and amount of financing to their needs and market conditions.