Debenture, as a debt security, provides the right investor with credit. In other words, the investor earns the right to get a commission (interest, usually) from the issuer, getting back the amount invested. Debentures in Brazil are among the most traditional methods of raising funds through securities. In the deeds of issue, the debentures are fully characterized. You can determine in this document the destination of all resources that are captured.

Publicly-held and privately-held corporations issue debentures, which are intended to finance projects or restructure the company. The reduction in the average cost, the expansion and adequacy of the profile and the considerable decrease in the guarantees used are among the advantages in the acquisition of resources.

Thus, a company may issue debentures instead of resorting to bank financing in order to raise funds. These can be applied to projects that, for example, increase the company's production capacity or allow it to enter a new business segment.

It is possible for the company to make several issues, and each issue can be divided into series. Within the same series, the debentures have an equal nominal value, thus granting equal rights to the holders. In addition, the company can add to debentures that will make them attract more buyers - profit sharing and stock convertibility, for example.

Law No. 6,404 (1976), ICVM 400 (2003) and ICVM 476 (2005).