Convertible vs Non-Convertible Debentures: Key Differences Convertible vs Non-Convertible Debentures: Key Differences Debentures are one of the most common ways for companies to raise funds in the debt market. Kiran Shroff / Tuesday, March 4, 2025 / Article rating: 3.5 Debentures can be classified into two broad categories: convertible and non-convertible. Both offer distinct advantages and have different implications for both the issuer and the investor.