Debenture agreement definition. 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. Governments and corporations can use debentures as a capital-raising tool in lieu of taking out traditional loans. Feb 1, 2023 · A debenture is a type of bond that is not secured by any sort of collateral. Finally, we will answer some frequently asked questions about debentures to help investors make informed decisions. They are distinct from traditional loans and bonds mainly because they do not require the borrower to pledge collateral. Nov 3, 2024 · We will also look at the role of creditworthiness in debenture investing and explore how corporations and governments use debentures to raise funds. A debenture is essentially a long-term loan that a corporate or government raises from the public for capital requirements. Nov 29, 2023 · A Debenture is a type of debt security that companies use to raise money from investors. May 19, 2025 · What Is a Debenture? A debenture is a type of debt instrument used by companies and governments to raise capital from investors. . For example, a government raising funds to construct roads for the public. Oct 7, 2025 · A debenture is unsecured debt issued by corporations or governments that relies on the issuer's creditworthiness and reputation rather than collateral to support its value. It is a loan in which the issuer promises to pay a fixed rate of interest periodically and return the original amount at maturity. Oct 7, 2025 · A debenture is unsecured debt issued by corporations or governments that relies on the issuer's creditworthiness and reputation rather than collateral to support its value. A debenture is a long-term unsecured debt instrument issued by companies or governments to raise capital. When an investor purchases a debenture, they essentially lend money to the issuer in exchange for regular interest payments and the eventual repayment of the principal amount upon maturity. Corporations and governments use debentures as long term funding options, usually for major expansions and projects in the case of corporations. Debentures have set interest rates, payback periods, and regular interest payments as most other bonds do. The company pledges its assets as collateral for the loan, and in return, the investor receives a regular stream of interest payments. A debenture is an unsecured debt or bond that repays a specified amount of money plus interest to the bondholders at maturity. May 11, 2024 · Debentures are debt instruments issued by corporations or governments to raise capital. Debentures refer essentially to unsecured bonds within the United States. The meaning of DEBENTURE is a corporate security other than an equity security : bond. p0ffyje4qlvtr13qtvaotdkreqsqdyuz9hcjqlori