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Finance & Banking vocabulary · Corporate Finance

Raise capital

Meaning in finance & banking, with examples

phraseCommon term

In finance & banking, raise capital means: To get money for a business from investors or lenders, for example by selling new shares, issuing bonds or borrowing.

In Turkish: sermaye artırımı yapmak, fon sağlamak, kaynak bulmak

How it is used

Used in corporate finance, start-ups and banking. Companies raise capital to grow, repay debt or meet regulatory requirements. Selling shares raises equity; bonds and loans raise debt. Banks raise capital to strengthen their capital adequacy ratio. 'Raise funds' and 'raise money' are close synonyms.

Example sentences

  1. The bank raised capital through a rights issue to support loan growth.

  2. The start-up raised 5 million dollars of capital from venture funds.

Common collocations

  • raise capital
  • raise funds
  • capital raising
  • rights issue
  • raise debt
  • capitalMoney and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.
  • equityThe owners' share of a company: what is left when liabilities are taken away from assets. It includes paid-in capital and retained profits.
  • issueTo create and offer new shares, bonds or other securities to investors; also to produce an official document or card, such as a credit card or a guarantee.
  • IPOShort for initial public offering: the first time a private company sells its shares to the public on a stock exchange.
  • capital adequacy ratioA bank's capital divided by its risk-weighted assets. It shows whether the bank has enough capital to absorb losses; Basel rules require at least 8% before extra buffers.

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.