To pay or discharge (a debt, expense etc.); to meet (the cost of something).
1946, (w), History of Western Philosophy, I.29:
The expenses of the war, while in progress, were defrayed by executing rich men and confiscating their property.
2009, ‘A Viennese grind’, The Economist, 30 Jul 2009:
Investors, meanwhile, got back a fraction of their money. Some say Mr Meinl’s €100m bail, paid by a source in Liechtenstein, should be used to defray their losses.
2010, Roy Greenslade, The Guardian, 9 Dec 2010:
In order to help defray the substantial costs involved, they then raised revenue through taking advertisements.