debenture

noun

Pronunciation: dɪˈbɛntʃər

Definition

A medium- to long-term debt instrument used by large companies to borrow money at a fixed rate of interest, backed only by the general creditworthiness of the issuer rather than specific physical assets.

Examples

• The corporation decided to issue a debenture to fund its upcoming expansion project.

• Investors were wary of the new debenture because it lacked the security of tangible collateral.

• The interest payments on the company's outstanding debenture remain a priority for the finance department.

Synonyms of debenture

Words with a similar meaning to debenture:

• bond
• note
• promissory note
• debt security

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