debt-equity swap
noun [ C ]
(also debt/equity swap) ukus(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.