perpetual bond

(redirected from Perpetual Debentures)

Perpetual bond

Nonredeemable bond with no maturity date that pays regular interest rates indefinitely.

Perpetual Bond

A bond in which the issuer does not repay the principal. Rather, a perpetual bond pays the bondholder a fixed coupon as long as he/she holds it. Prices for perpetual bonds vary widely according to long-term interest rates. When interest rates rise, perpetual bonds fall and vice versa. Perpetual bonds are most common in the United Kingdom, where they were used originally to pay for the military.

perpetual bond

See consol.
References in periodicals archive ?
73 times following the successful placement of the company s perpetual debentures at the end of October (based on September financial results notionally adjusted with these proceeds).
V (NYSE: CX) has extended an early tender date for its four separate private offers to exchange CEMEX's currently outstanding perpetual debentures for new senior secured notes to be denominated in USD and EUR.
Based on the structure of IVL s perpetual debentures, the debentures were rated A- by TRIS Rating, a local credit rating agency, while IVL has a company rating of A+.