What is a Debenture? A debenture is a type of long-term debt instrument that a company issues to borrow money from investors. In return, the company promises to pay a fixed rate of interest at regular intervals and return the principal amount on maturity. In simpler words, when you buy a debenture, you’re lending money to the company — and in exchange, you earn interest (also known as a coupon). Debentures are similar to bonds but are typically issued by corporates rather than governments. What is a Debenture? A debenture is a type of debt instrument used by companies and governments to raise capital from investors. It is an unsecured loan, meaning it is not backed by any collateral but relies on the issuer's creditworthiness. Investors who purchase debentures receive fixed interest payments at regular intervals until maturity, when the principal amount is repaid. Debentures can be convertible (converted into shares) or non-convertible, and they are commonly issued to finance ... Debentures are unsecured debt instruments issued by governments or corporations, relying on the issuer's creditworthiness and reputation rather than collateral. Debentures are debt instruments that companies and governments use to raise capital from investors. They offer fixed interest payments, no voting rights, and various types based on security, convertibility, term, and registration.
