Fixed Income

Net Debt

Definition

What is Net Debt?

Interest-bearing debt minus cash and cash equivalents.

Example in practice

A company with ₦10 billion debt and ₦3 billion cash has ₦7 billion net debt.

Keep learning

A debt security through which an investor lends money to an issuer in return for promised payments.

The government, company, or organisation that creates and sells a security.

The principal amount stated on a bond and usually repaid at maturity.

A short-term government debt instrument usually issued at a discount and repaid at face value.

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