Reading 19 Blue box example 1

WRT subject "the contingent convertible long-term bonds are issued by the savings bank and sold to institutional investors. The key feature is that if defaults on the mortgage loans reach a certain level or the savings bank’s capital ratio drops below a certain level, as determined by the regulator, the bonds convert to equity at a specified price per share. "

the timing is uncertain but the amount ( specified price per share) is certain then why it is type IV liability?

thank you

The amount is uncertain because you do not know whether at the next coupon payment date (let’s say), will there be a coupon payment or a conversion of the bond into equity (if the capital ratio drops below the threshold).