Use of proceeds

Use of proceeds is a statement in a bond offering or other financial transaction that outlines how the funds raised from the issuance will be utilized by the issuer. This disclosure provides transparency regarding the intended purpose of the capital raised through the issuance of bonds. By detailing the use of proceeds, issuers help investors understand the rationale behind the bond issuance and how the funds will be allocated, which can impact the risk and return profile of the investment.

The use of funds received may include financial activities (e.g., asset financing, bank debt retirement/refinance, debt issuance, equity issuance), investment activities,  operation activities (e.g., commercial paper support, working capital, fee & expense payment), or strategic activities (expansion, research & development).