Debenture
ISIN.net assists companies worldwide get their debenture ISIN number. Getting a ISIN number for debentures is not the easiest process, although it also very common and straight forward. ISIN.net’s specialists can assist in acquiring a ISIN number. Documentation must first be drafted (properly) and then, and only then, can one apply for the actual ISIN identifier.
ISIN.net is the global provider of ISIN and CUSIP services for debenture.
Debenture
A debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital. Senior debentures get paid before subordinate debentures, and there are varying rates of risk and payoff for these categories.
The ISIN Number Code is used in nearly 100 countries to identify both equity and debt securities issues, derivatives, syndicated loans and equity options, as well as stocks, bonds, treasuries, commercial paper, medium terms notes, warrants, rights, trusts, futures, options and more.
The ultimate goal of international identification codes referred to as “ISIN” (International Securities Identification Number) is to standardize the identification of securities and other financial instruments via a unified system and a uniform classification.
Said another way, ISIN numbers are allocated to securities, much like a social security number for a person, in order to clearly show or state what the securities details are, and to assist in the clearing and settlement procedures between potential buyer and seller.
ISINs – as opposed to the 9 digit CUSIP numbers – are composed of a 12 digit alphanumeric number code. The ISINs are also a solid tool in the unification for varying ticker symbols (think “APPL” for Apple, Inc.). Ticker symbols can vary from exchange to exchange, which only causes confusion, especially when currency is taken into consideration. Thus, a ticker symbol for a US security traded on the NASDAQ may be different on other Stock Exchanges. Therefore, an ISIN number can actually ‘unify’ all ticker symbols of the securities, enabling those searching for the securities to see an all-inclusive picture of the securities being searched.
For the United States, ISIN codes are extended versions of the 9-character CUSIP (Committee on Uniform Security Identification Procedures) numbers. ISIN numbers are formed by adding a country code and what is called a “check digit” to the beginning of the CUSIP, and end of a CUSIP numbers.
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