There are different types of debt instruments including bonds, mortgages, debentures and other agreements between the borrower and lender. Debt instrumentĭebt instrument describes when a paper or electronic obligation is made which enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. The benefit for the lender is that they will receive interest on the debt being repaid. Debt financingĭebt financing is used to describe the process where a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors. The loan made to the company is in most cases repaid at a pre-determined future date. Debt capitalĭebt capital is the capital that a business raises by taking out a loan. Corporate debt restructuring (CDR)Ĭorporate debt restructuring, commonly abbreviated to ‘CDR’, refers to the situation where financial institutions and banks come together to restructure the debt of companies that are facing difficulties financially due to either internal or external factors, in order to provide support to companies in a time of need. The decision to do this is often taken due to changing financial climates where more favourable financing options may become available. Corporate debt refinancingĬorporate debt refinancing refers to an action taken by a company when it chooses to reorganise its financial commitments by replacing or restructuring its existing debts. Corporate debtĬorporate debt refers to debt that is owed by businesses rather than by private individuals or governments. This type of debt can take the form of a short term, intermediate term or even long-term loan. In most cases the private creditor is a commercial bank. This debt term refers to debt owned by a private sector creditor. Environmental, Social and Corporate Governance (ESG)Ĭommercial debt is often used as a way for companies to finance projects for day-to-day operations.SYSTEMS ADVISORY AND DIGITAL TRANSFORMATION.
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