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Finance & Banking vocabulary · Corporate Finance

Sinking fund

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, sinking fund means: Funds accumulated, or scheduled amounts applied, to retire debt over time under an agreement.

In Turkish: borç itfa fonu

How it is used

Use in bond documentation; distinguish scheduled debt retirement from an unrestricted cash reserve.

Example sentences

  1. The issuer made the annual contribution required by the sinking fund provision.

    The agreement allocates resources toward future debt retirement.

  2. The sinking fund redeemed part of the bond issue before final maturity.

    Debt can be retired progressively rather than entirely at maturity.

Common collocations

  • sinking fund provision
  • sinking fund payment
  • bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
  • repaymentThe act of paying back money you have borrowed, or one of the regular amounts you pay to do this.

More terms: Corporate Finance

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