Debenture Stocks Companies in Malaysia

A debenture stock is a debt security issued by a company, typically with a term of more than one year. Debenture stocks are not backed by collateral, so they are considered riskier than secured debt. Debenture holders are paid interest (known as "coupons") at a fixed rate, and they are repaid the principal amount of the debenture at maturity.

Companies in Malaysia typically issue debenture stocks to raise capital for expansion or other purposes. Because debenture stocks are not backed by collateral, they tend to have higher interest rates than other types of debt. For this reason, debenture stocks are often used by companies with less-than-stellar credit ratings.