Unlike normal bonds, warrant-linked bonds are issued with warrants that entitle the bearer to buy shares in the issuing company at a predetermined price, usually following a given period. Once the exercise period has begun, the investor can separate the warrants from the bond and sell them on the stock exchange. The bonds are then listed with the addendum "ex".
Issuers benefit because the interest rates on warrant-linked bonds are relatively low. Moreover, if the warrant is exercised, their shares will be sold to the investor at a relatively high price.
Investors benefit from the fixed interest payments on warrant-linked bonds, and from a potential increase in the stock price.