Covering initial investment using coin as capital (7)
I believe the answer is:
nicosia
'capital' is the definition.
(capital of Cyprus)
'covering initial investment using coin as' is the wordplay.
'covering' means one lot of letters goes inside another.
'initial' says to take the initial letters.
'using' is an anagram indicator (the letters used in a different way).
The initial letter of 'investment' is 'i'.
'coin'+'as'='coinas'
'coinas' anagrammed gives 'ncosia'.
'i' put into 'ncosia' is 'NICOSIA'.
(Other definitions for nicosia that I've seen before include "European Union's most southerly capital" , "capital city" , "Divided Cypriot capital" , "Divided Cypriot city" , "Casino I find in Cyprus - that's capital" .)