Refunding occurs when an entity that has issued callable bonds calls those debt securities from the debt holders with the express purpose of reissuing new debt at a lower coupon rate. In essence, the issue of new, lower-interest debt allows the company to prematurely refund the older, higher-interest debt. On the contrary, NonRefundable Bonds may ...
Replacing an old debt issue with a new one, usually to lower the interest cost.
Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed.
The redemption of a bond with proceeds received from issuing lower-cost debt obligations ranking equal to or superior to the debt to be redeemed. 
Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal
A system by which a bond issue is redeemed by a new bond issue under conditions generally more favorable to the issuer.
The replacement of government debt, often debt that is about to mature, with new longer-dated... <a target=_blank href='http://www.finance-glossary.com/terms/refunding.htm?id=12914&ginPtrCode=00000&PopupMode=false' title='Read full definition of refunding'>more</a>