debenture Definition
- 1a type of long-term loan that is often used by large companies and governments to raise money, usually with a fixed rate of interest and secured against assets
- 2a document that proves that someone has lent money to a company or government and that the money will be paid back with interest
Using debenture: Examples
Take a moment to familiarize yourself with how "debenture" can be used in various situations through the following examples!
Example
The company issued debentures to finance its expansion.
Example
He invested in debentures issued by the government.
Example
The debenture holders will receive their interest payments on a quarterly basis.
debenture Synonyms and Antonyms
Phrases with debenture
a type of debenture that can be converted into shares of the issuing company at a predetermined price
Example
The company offered convertible debentures to attract investors.
a type of debenture that is secured by specific assets of the issuing company, which can be sold to repay the debt if the company defaults
Example
The bank required the company to issue secured debentures as collateral for the loan.
a type of debenture that is not secured by any specific assets of the issuing company, and is therefore riskier for investors
Example
The company issued unsecured debentures to raise funds quickly, but had to offer a higher interest rate to attract investors.
Origins of debenture
from Latin 'debentur', meaning 'there are owed'
Summary: debenture in Brief
A 'debenture' [dɪˈbɛn.tʃər] is a type of long-term loan that large companies and governments use to raise money, secured against assets. It can also refer to a document that proves someone has lent money to a company or government. Examples include 'The company issued debentures to finance its expansion.' and 'He invested in debentures issued by the government.' Types of debentures include 'convertible debenture,' which can be converted into shares, and 'secured debenture,' which is secured by specific assets of the issuing company.
