Debenture

A debt instrument documenting a company’s borrowing, typically repayable with interest and sometimes secured by a charge over its assets. Its precise legal meaning varies by jurisdiction.

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Bond: A tradable debt security in which an issuer promises specified payments to investors. Debentures are commonly treated as a type of corporate bond.
Unsecured debt: Borrowing that is not backed by collateral pledged to creditors. An unsecured debenture relies on the issuer’s general credit rather than a specific asset charge.
Corporate finance: The management of a company’s funding, investment, and financial decisions. Issuing debentures is one way companies finance operations and long-term projects.
Corporate insolvency: A company’s inability to pay debts or the legal process for resolving its financial failure. Default can bring debenture enforcement into a wider insolvency process.
Secured debt: Borrowing backed by specified collateral that creditors may claim after default. A debenture may secure repayment through a charge over company assets.
Share: A unit of ownership in a company that may carry voting or dividend rights. Debenture holders are creditors, unlike shareholders, who hold an ownership interest.
Debt capital markets: Markets where governments and organizations raise funds by issuing debt securities. Public debenture issues connect corporate borrowers with institutional and individual investors.
Receivership: A process in which a receiver takes control of assets to realize or manage them for creditors. A secured debenture may grant rights to appoint a receiver over charged assets.
Floating charge: A security interest over changing business assets that can crystallize upon specified events. It can let a company use charged assets in ordinary business until enforcement conditions arise.
Convertible bond: A bond that can be exchanged for shares under specified terms. Some debentures include a conversion option, changing debt into potential equity.