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- Dictionarydebenture/dɪˈbɛn(t)ʃə/
noun
- 1. a long-term security yielding a fixed rate of interest, issued by a company and secured against assets.
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May 31, 2024 · A debenture is a type of debt instrument that is not backed by any collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of...
Debentures are instruments of debt, which means that debenture holders become creditors of the company. They are a certificate of debt, with the date of redemption and amount of repayment mentioned on it. This certificate is issued under the company seal and is known as a Debenture Deed.
Nov 29, 2023 · A debenture is a loan certificate issued by the company to its holders. Instead of borrowing entire funds from an individual, a company can divide the funds into certain small denominations or parts (i.e., debentures). Debentures carry interest at a certain percent (e.g., 8%).
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond, loan stock or note.
Apr 15, 2024 · A debenture is essentially a long-term loan that a corporate or government raises from the public for capital requirements. For example, a government raising funds to construct roads for the public.
DEBENTURE definition: 1. a type of loan, often used by companies to raise money, that is paid back over a long period of…. Learn more.
Feb 1, 2023 · Debentures are a specific type of bond that government entities or corporations can use to raise capital. While all debentures are bonds, not all bonds are debentures. The biggest difference between the two has to do with how they’re collateralized.
Aug 11, 2020 · Debentures are bonds that are not secured by specific property or collateral. Instead, they are backed by the full faith and credit of the issuer, and bondholders have a general claim on assets that are not pledged to other debt.
Dec 6, 2016 · : a bond backed by the general credit of the issuer rather than a specific lien on particular assets. Examples of debenture in a Sentence.
DEBENTURE meaning: 1. a type of loan, often used by companies to raise money, that is paid back over a long period of…. Learn more.
