Bond Issuance

Bond issuance is when a government or corporation raises money by selling bonds to investors. A bond is a type of loan: the buyer lends money to the issuer, who promises to pay back the amount (the principal) on a specific date, plus interest over time. This process allows issuers to fund projects or operations without selling equity. Investors, in turn, earn interest, making bonds a lower-risk investment compared to stocks. Overall, bond issuance helps channel funds from those who have money to those who need it for various purposes.