Split Offering

[split AW-fuh-ring]

What is the definition of Split Offering?

A new municipal bond issue that is divided into two parts: one part consisting of serial bonds and the other of term maturity bonds.

Using Split Offering in an Example

In a split offering, a city might issue $10 million in bonds where $5 million are serial bonds maturing annually over the next 10 years, and the remaining $5 million are term maturity bonds due in 20 years. This allows the city to manage its debt repayment schedule more effectively by spreading out the maturity dates.

Using Split Offering in a sentence

The financial advisor explained that the split offering would provide investors with options to invest in shorter-term serial bonds or longer-term maturity bonds, depending on their investment goals.

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