Definition of “debt-equity swap” - English Dictionary

“debt-equity swap” in Business English

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debt-equity swapnoun [ C ]

also debt/equity swap uk us also debt-for-equity swap, debt swap

FINANCE an agreement in which a company offers shares to its creditors (= banks and organizations that lend it money) so they will reduce the amount of its debt:

The debt-for-equity swap could create more than 1.5 billion new shares.

ECONOMICS, FINANCE a financial arrangement in which a country's government gives local currency, shares, etc. to foreign investors who agree to pay part of the government’s foreign debts:

The Treasury Secretary needs to establish a viable debt-equity swap program if it hopes to attract private foreign capital.

(Definition of “debt-equity swap” from the Cambridge Business English Dictionary © Cambridge University Press)