What is an outstanding debenture?

An outstanding debenture refers to a type of long-term debt instrument issued by a company that has not yet been repaid. It represents a loan made by investors to the issuer, typically with a fixed interest rate and maturity date. Because debentures are often unsecured, they rely on the issuer's creditworthiness for repayment. Outstanding debentures appear as liabilities on the issuer's balance sheet until they are redeemed or paid off.