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Debenture issue

Debenture issue

A debenture issue means a company borrows money by issuing bonds or debentures to investors.

What is a debenture issue?

A debenture issue (Swedish: obligationsemission), also called a bond issue, means that a company raises a loan by issuing bonds. Investors lend money for interest and are repaid at maturity. Unlike a new share issue, an ordinary bond gives no ownership stake in the company.

 

Bonds and the share ledger

An ordinary debenture issue does not affect the number of shares or the share ledger. It is different with convertibles and bonds with warrants, which can lead to new shares. Ownership stakes may then be affected through dilution.

Learn more about capital raising
Henrik Kristensen, NVR
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Related terms

Convertible

A convertible is a loan that can be exchanged for shares in the company.

Bond with warrants

A bond with warrants is a loan where the debt instrument carries warrants to subscribe for new shares.

New share issue

A new share issue is when a limited company issues new shares for payment to increase its capital.

Capital raising

Capital raising is when a company brings in new capital, for example through a new share issue.