News Excerpt:

Adani Ports and Special Economic Zone Ltd. announced that it will raise ₹5,250 crore by issuing non-convertible debentures and 2.5 billion rupees through non-cumulative redeemable preference shares.

• The tenure of the instrument, date of allotment and date of maturity will be determined from time to time at the time of issue.

About: 

Debentures: 

• A type of loan, or a long-term debt instrument issued by a company or organisation to raise funds from the public or institutional investors. 
• Some debentures have a feature of convertibility into shares (Convertible Debentures) after a certain point of time at the discretion of the owner while others don't (Non- Convertible). 

Non-convertible debentures (NCDs):

• The debentures that cannot be converted into shares or equities are called non-convertible debentures (or NCDs).
• NCDs are used as tools to raise long-term funds by companies through a public issue.
• To compensate for this drawback of non-convertibility, lenders are usually given a higher rate of return compared to convertible debentures.
• Its issuance and trading usually occur in demat form only.

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