On a drizzly morning in Nagpur, Zoya met her uncle Raghav at a tea stall and asked how a company turns a plan into money from savers. He said the steps are like a school assembly. Everyone has a role and timing matters. By the end of this cup you will know how corporate bonds are issued, and you will see how investors who like corp bonds can join the line with confidence.

What a bond promises
A company borrows from many savers at once. It pays interest on set dates and returns principal at maturity. A trustee oversees the promise. Records sit in demat and cash reaches your bank on schedule. The point is clean dates and clear protection.

How corporate bonds are issued
The board approves a borrowing plan. Advisors decide coupon, maturity, and whether the issue will be secured. A rating agency studies finances and assigns a grade. Lawyers write an offer document that lists purpose, risks, payment schedule, and covenants. A trustee is appointed. If security is offered, charges on assets are recorded. Orders are collected, demand shapes the yield, allotments are finalized, money moves through clearing, and bonds land in demat. Listing can follow so trading begins.

How the price settles
The market starts with a government yield curve and adds a spread for business risk. Shorter maturities usually cost less than long ones. Liquidity, disclosure quality, and covenant strength nudge cost up or down. On sale day the order book decides the final coupon.

Where corp bonds fit for a saver
If you like steady income and a clear timeline, corp bonds can sit beside deposits and funds. Match maturity to your goal, choose quality issuers, and keep an emergency cushion so you are never forced to sell early.

Zoya finished her tea and nodded. The line was straight. She could explain how corporate bonds are issued to her classmates without a single chart.