Guaranteed Bond

See: Bond. See: AMBAC. See: Surety Bond.

Just like any other bond, only some entity is guaranteeing that it'll be paid.

Example.

You are a maker of teeeeeny tinnnny wires that connect semi-chips to a special newfangled battery. Apple desperately wants these wires at scale. Like...a milion a week for 3 years. They've offered to buy you, but you don't want to sell. If Apple doesn't have these wires, they simply won't be able to meet demand for their new OiPhone, the unbreakable one, even if you drop it 4 stories and scream "Oi!" as it's faling.

You, maker of the Teeeny, need $100 million in cashola to fund the build the factory of Teeeeny Wires. The lenders are nervous that if Apple goes away as a customer, they'll be stuck holding a hundred million dollar bag. So Apple guarantees the bond, i.e. loan that you're taking out, so that the lender gets to tap Apple's coffers, should you ever not pay.

The same kinds of guarantees happen among various branches of government all around the world, when smaller municipal or other projects want to get done but can't, due to skittish lenders.