Redemption: One possible choice is the redemption of the debenture. When you opt for redemption, you receive the principal amount of the debenture along with any accrued interest up to the date of redemption. This can be an appealing option, providing immediate liquidity during your transition into retirement.

Conversion: Some debentures offer the option to convert them into company shares, subject to the terms outlined in the debenture agreement. Converting to shares can open the door to potential capital gains and dividend income, depending on the company’s performance.

Sale in the Secondary Market: If your debenture is transferable or tradable, you may consider selling it in the secondary market. Selling your debenture in this manner allows you to potentially receive a market price, which can vary based on supply and demand dynamics.

T’s and C’s apply

The specific choices available to you will depend on the terms and conditions of your debenture agreement. To make an informed decision, it’s advisable to consult with a financial advisor or seek guidance from the company’s legal department. They can help you evaluate your options based on your financial goals and personal circumstances.

Seek professional advice

Debenture holders facing retirement or retrenchment have several paths to consider. Whether you choose redemption, conversion, or selling in the secondary market, understanding the terms of your debenture and seeking professional advice can help you make the most suitable decision for your financial future. Your investment journey doesn’t end with retirement—it evolves.