Debt Instrument definition: Copy, customize and use instantly
Introduction
The term "Debt Instrument" refers to a financial product or agreement that represents a borrowing arrangement between two parties, where the borrower agrees to repay the principal amount along with interest under specified terms. It is essential in contracts to define the terms of the debt clearly, ensuring both parties understand their rights and obligations.
Below are various examples of how "Debt Instrument" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Debt Instrument" as a bond
This definition ties "Debt Instrument" to bonds issued for funding purposes.
"Debt Instrument" means any bond issued by a corporation, government, or other entity, representing an obligation to repay the principal amount along with interest, in accordance with the terms specified at issuance.
Definition of "Debt Instrument" as a secured loan
This definition connects "Debt Instrument" to loans backed by collateral.
"Debt Instrument" refers to any loan secured by assets or collateral, such as real estate, inventory, or equipment, where the borrower is obligated to repay the loan amount along with any applicable interest.
Definition of "Debt Instrument" as a promissory note
This definition ties "Debt Instrument" to formal written promises.
"Debt Instrument" means any promissory note in which the borrower agrees to repay a specified sum to the lender at a defined time, with or without interest, as outlined in the agreement.
Definition of "Debt Instrument" as a credit facility
This definition applies "Debt Instrument" to bank-issued credit arrangements.
"Debt Instrument" refers to any form of credit facility provided by a financial institution, including term loans, lines of credit, or revolving credit, governed by the terms of the loan agreement.
Definition of "Debt Instrument" as convertible debt
This definition ties "Debt Instrument" to hybrid financing.
"Debt Instrument" means any debt security that provides the holder with the right to convert the debt into equity of the issuing company, as per the terms specified in the instrument.
Definition of "Debt Instrument" as a commercial paper
This definition connects "Debt Instrument" to short-term funding.
"Debt Instrument" refers to any unsecured, short-term promissory note issued by corporations to finance working capital or other immediate needs, typically maturing within 270 days.
Definition of "Debt Instrument" as subordinated debt
This definition ties "Debt Instrument" to lower-priority obligations.
"Debt Instrument" means any loan or debt obligation that ranks below other debts in terms of repayment priority, often carrying higher risk but offering higher returns.
Definition of "Debt Instrument" as an invoice financing agreement
This definition applies "Debt Instrument" to trade finance.
"Debt Instrument" refers to any agreement where a lender advances funds based on the value of invoices issued by the borrower, with repayment terms tied to the collection of receivables.
Definition of "Debt Instrument" as a government-issued security
This definition ties "Debt Instrument" to public debt.
"Debt Instrument" means any treasury bill, bond, or note issued by a government to raise funds for public expenditures, with specified terms for repayment and interest.
Definition of "Debt Instrument" as structured finance products
This definition applies "Debt Instrument" to complex financial arrangements.
"Debt Instrument" refers to any structured financial product, such as collateralized debt obligations (CDOs) or asset-backed securities (ABS), designed to pool and redistribute risk among investors.
Definition of "Debt Instrument" as trade credit
This definition applies "Debt Instrument" to deferred payment arrangements.
"Debt Instrument" refers to any agreement under which a seller extends credit to a buyer, allowing the deferred payment for goods or services delivered under the terms of the trade agreement.
Definition of "Debt Instrument" as a warehouse receipt financing
This definition ties "Debt Instrument" to inventory-based loans.
"Debt Instrument" means any financing arrangement secured by warehouse receipts representing inventory, where the lender provides funds against the value of stored goods.
Definition of "Debt Instrument" as a perpetual bond
This definition applies "Debt Instrument" to long-term obligations.
"Debt Instrument" refers to any bond without a fixed maturity date, where the issuer makes ongoing interest payments indefinitely, subject to redemption at the issuer’s discretion.
Definition of "Debt Instrument" as a bridge loan
This definition connects "Debt Instrument" to short-term financing.
"Debt Instrument" means any short-term loan used to bridge the gap between the immediate need for funding and the arrangement of long-term financing.
Definition of "Debt Instrument" as intercompany loans
This definition applies "Debt Instrument" to intra-group financing.
"Debt Instrument" refers to any loan or credit arrangement provided between related entities within the same corporate group to support operations, acquisitions, or other financial needs.
Definition of "Debt Instrument" as mezzanine financing
This definition ties "Debt Instrument" to hybrid capital.
"Debt Instrument" means any subordinated loan or note that includes equity conversion rights, often used in high-risk projects or growth financing.
Definition of "Debt Instrument" as microfinance loans
This definition applies "Debt Instrument" to small-scale financing.
"Debt Instrument" refers to any small-scale loan provided to individuals or businesses, typically in underserved markets, to promote entrepreneurship or economic development.
Definition of "Debt Instrument" as Islamic finance products
This definition connects "Debt Instrument" to Sharia-compliant structures.
"Debt Instrument" means any financial product structured to comply with Islamic finance principles, such as Sukuk, which avoids interest and emphasizes asset-backed funding.
Definition of "Debt Instrument" as export credit financing
This definition ties "Debt Instrument" to international trade.
"Debt Instrument" refers to any credit facility provided to finance the export of goods or services, often backed by export credit agencies or government guarantees.
Definition of "Debt Instrument" as distressed debt securities
This definition applies "Debt Instrument" to defaulted or high-risk debt.
"Debt Instrument" means any bond, loan, or note issued by an entity in financial distress, often traded in the secondary market at a significant discount.
Definition of "Debt Instrument" as climate-linked bonds
This definition connects "Debt Instrument" to environmental goals.
"Debt Instrument" refers to any bond issued to finance environmentally beneficial projects, such as renewable energy or carbon reduction initiatives, with repayment tied to achieving specified climate targets.
Definition of "Debt Instrument" as performance-linked notes
This definition ties "Debt Instrument" to specific outcomes.
"Debt Instrument" means any note where interest or repayment terms are tied to the achievement of specific performance metrics, such as revenue growth or operational efficiency.
Definition of "Debt Instrument" as toll revenue bonds
This definition applies "Debt Instrument" to infrastructure funding.
"Debt Instrument" refers to bonds issued to finance toll-based infrastructure projects, where repayment is secured by the revenue generated from toll collections.
Definition of "Debt Instrument" as private placement securities
This definition ties "Debt Instrument" to non-public offerings.
"Debt Instrument" means any bond or note issued through private placement to select investors, often tailored to specific terms and risk profiles.
Definition of "Debt Instrument" as energy project financing
This definition ties "Debt Instrument" to funding for energy projects.
"Debt Instrument" means any loan, bond, or note issued to finance energy infrastructure projects, including renewable energy facilities, power plants, or grid upgrades.
Definition of "Debt Instrument" as social impact bonds
This definition applies "Debt Instrument" to socially beneficial projects.
"Debt Instrument" refers to any bond issued to finance initiatives aimed at achieving measurable social outcomes, with repayment tied to the success of the program.
Definition of "Debt Instrument" as tax-exempt municipal bonds
This definition ties "Debt Instrument" to tax-advantaged securities.
"Debt Instrument" means any municipal bond issued by a local government or agency, the interest on which is exempt from federal income tax and often state and local taxes.
Definition of "Debt Instrument" as accounts receivable financing
This definition connects "Debt Instrument" to receivables-based funding.
"Debt Instrument" refers to any financing agreement where funds are advanced based on the value of accounts receivable, with repayment tied to the collection of those receivables.
Definition of "Debt Instrument" as private equity-backed loans
This definition ties "Debt Instrument" to private equity financing.
"Debt Instrument" means any loan or credit facility provided to a portfolio company by a private equity fund, often secured by the company's assets or cash flow.
Definition of "Debt Instrument" as sovereign wealth fund loans
This definition applies "Debt Instrument" to government-backed financing.
"Debt Instrument" refers to any loan or bond issued by a sovereign wealth fund to support strategic investments or infrastructure projects, often with favorable terms.
Definition of "Debt Instrument" as non-performing loans
This definition ties "Debt Instrument" to distressed banking assets.
"Debt Instrument" means any loan that has defaulted or is unlikely to be repaid in full, often sold to investors or restructuring entities at a discount.
Definition of "Debt Instrument" as sustainability-linked loans
This definition connects "Debt Instrument" to environmental or social targets.
"Debt Instrument" refers to any loan where the terms, such as interest rates or repayment amounts, are tied to the borrower’s achievement of predefined sustainability or ESG (Environmental, Social, Governance) goals.
Definition of "Debt Instrument" as equipment-backed financing
This definition ties "Debt Instrument" to secured loans for machinery.
"Debt Instrument" means any loan secured by equipment or machinery, with repayment terms based on the productive use of the financed assets.
Definition of "Debt Instrument" as inflation-indexed bonds
This definition applies "Debt Instrument" to inflation-protected securities.
"Debt Instrument" refers to any bond where the principal and/or interest payments are adjusted for inflation, ensuring the real value of the repayment remains stable over time.
Definition of "Debt Instrument" as development bank loans
This definition ties "Debt Instrument" to multilateral development financing.
"Debt Instrument" means any loan or credit facility provided by a development bank to finance infrastructure, education, or healthcare projects in emerging markets.
Definition of "Debt Instrument" as demand notes
This definition connects "Debt Instrument" to repayable-on-demand obligations.
"Debt Instrument" refers to any promissory note that is repayable upon the demand of the lender, often used in short-term or flexible financing arrangements.
Definition of "Debt Instrument" as syndicated debt facilities
This definition applies "Debt Instrument" to multi-lender agreements.
"Debt Instrument" means any loan or credit facility provided jointly by a syndicate of lenders, with shared terms and repayment structures.
Definition of "Debt Instrument" as cross-border bonds
This definition ties "Debt Instrument" to international debt securities.
"Debt Instrument" refers to any bond issued in one country by a foreign entity, subject to the regulations and market practices of the issuing jurisdiction.
Definition of "Debt Instrument" as green sukuk
This definition applies "Debt Instrument" to Sharia-compliant sustainability bonds.
"Debt Instrument" means any sukuk issued to finance environmentally sustainable projects, structured in accordance with Islamic finance principles and guidelines.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.