Bond financing refers to the process of raising capital by issuing bonds, which are debt securities that are sold to investors and pay a fixed interest rate. The money raised from bond sales is used to finance various projects or activities, such as building infrastructure, expanding business operations, or funding government programs. Bond financing can be an attractive option for borrowers because it allows them to raise large amounts of capital at relatively low interest rates. Investors are also drawn to bonds because they provide a stable source of income and are generally considered lower risk than other types of investments.