The purpose of issuing debentures for a company is to raise long-term capital for various business needs. Debentures are a form of debt instrument that companies issue to investors in exchange for funds. The primary objectives behind issuing debentures include:

1. Financing expansion: Companies often require funds to expand their operations, invest in new projects, acquire assets, or undertake research and development. Issuing debentures allows companies to raise capital without diluting ownership or control.

2. Working capital requirements: Debentures can help companies meet their working capital needs, such as managing inventory, paying salaries, and covering operational expenses during periods of low cash flow.

3. Lower cost of capital: Debentures can be an attractive financing option for companies as they often carry a lower cost of capital compared to other sources, such as equity. This is because debenture holders receive fixed interest payments, making them less risky for investors.

4. Tax benefits: The interest paid on debentures is tax-deductible for the issuing company, reducing its overall tax liability and increasing profitability.

5. Diversification of funding sources: By issuing debentures, companies can diversify their sources of funding and reduce their reliance on bank loans or other forms of financing, thus spreading their risk.

Overall, issuing debentures provides companies with a flexible and cost-effective means of securing long-term capital, enabling them to pursue growth opportunities and meet their financial obligations.