refunding

refunding definition - finance
The redemption of securities, typically debt, by raising more funds through another offering. When a company conducts a refunding operation, it recalls its existing bonds from the market. In exchange, a new bond issue is sold. Refunding may be done because the bonds are nearing maturity or because interest rates have fallen.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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