Debt securities issued by companies to raise capital. The investor lends money to the company in exchange for interest.

What is Debentures? Simple explanation

What are Debentures?

Debentures are debt securities issued by companies. When you buy a debenture, you are lending money to the company — and they pay you interest for it. It’s like a CDB, but issued by companies (not banks).

Types

Common Debentures

Taxed by IR (regressive table)
No FGC guarantee
Yield generally CDI + spread

Incentivized Debentures

Exempt from IR for individuals
Finance infrastructure projects
Yield: IPCA + fixed rate

Advantages

Yield is generally higher than CDB and Treasury
Incentivized debentures are exempt from IR
Diversification of fixed income
Varied terms (2 to 15 years)

Risks

Credit risk: company may not pay (no FGC)
Liquidity risk: it may be difficult to sell before maturity
Market risk: price may fluctuate if sold before

How to Evaluate

Before investing, check:

Company rating (credit score: AAA is the best)
Company sector (stable sectors are safer)
Guarantees (real, floating, unsecured)
Term (the longer, the higher the risk)

For Whom is it Indicated

Investors with assets over R$ 50,000
Those who already have Treasury and CDB and want to diversify
Those seeking IR exemption (incentivized debentures)
Moderate to aggressive profile