A loan structured in such a way that it can be converted into equity. An example is an income note that acts as equity, i.e. it bears interest only if the project generates interest. This means it has the form of equity (cf. stocks where income is generated only if the company pays a dividend). An example of the use of this type of instrument is in high-risk countries where an equity investment would be lost at once but an equity-like instrument, if dollar-denominated, would guarantee the capital and ensure income if the project produced income.