BusinessJuly 18, 2026

debenture

/dɪˈbɛntʃər/

Definition

A type of long-term debt instrument issued by a company that is not secured by physical assets or collateral, backed instead by the creditworthiness and reputation of the issuer.

Etymology

Derived from the Latin word 'debentur', which means 'they are owed' or 'there are due'. It entered Middle English as a term for a certificate of debt or a voucher acknowledging an obligation to pay.

In the news

In this article, the word appears as part of a list of financial instruments Inox Green Energy may issue to raise capital. It highlights the company's flexibility in choosing between different debt and equity structures to fund their operations.

Inox Green Energy board to mull fundraising on 22 July

Read the full article ↗

Business Standard

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