• Debt issuance involves the offer by the creditor of new bonds or other debt instruments in order to obtain borrowed capital.

  • Debt is usually in the form of fixed corporate or government obligations such as bonds or debentures.
  • When issuing debt, the seller promises the investor regular interest payments, as well as the possible repayment of the invested principal on a predetermined date.
  • Corporations issue debt for capital projects, while governments do so to finance social programs and infrastructure projects.