A bond issue is a financial instrument that allows an organization to raise money by selling debt securities, or bonds, to investors. These bonds are essentially loans made to the issuer with a promise to repay the principal amount on a specified maturity date along with interest payments at regular intervals until then. The proceeds from the bond issue can be used by the issuer for various purposes such as financing capital expenditures, refinancing debt or meeting working capital requirements. Investors purchase bonds because they offer a fixed rate of return and are generally considered to be safer investments compared to stocks. The price at which an investor can buy or sell the bond will fluctuate based on market conditions but the face value of the bond remains constant.