What is a bond ?

A debt issued by a company to raise funds

A bond is a debt issued by a legal entity (a company, in the case of private property debt) to raise funds directly from investors, known as bondholders. Bonds are the financial securities representing this debt: for the company issuing them, they are equivalent to a loan; for the investor subscribing to them, they represent a claim entitling the holder to interest.

A contract formalising the obligations of each party

The issuing company and the investor sign a bond contract, which formalises the terms of the loan and sets out, in particular:
The maturity, i.e. the duration of the loan
The interest rate appliedThe other rights and obligations of each party (repayment terms, associated guarantees, etc.)

A direct alternative to bank financing

Unlike a traditional bank loan, a bond issue allows the company to raise funds directly from a wide range of investors, without a banking intermediary; it is precisely this mechanism that makes private property debt financing possible, as offered on Raizers.

Updated on: 17/09/2026