perpetual bond

Also found in: Dictionary, Legal, Encyclopedia, Wikipedia.

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 ?
The first perpetual bond appeared in 18th century, when the UK converted all outstanding issues of redeemable government stock into one bond, Consolidated 3.
A subordinated perpetual bond helps increase the bank's capital and strengthen its shock absorbing capacity.
The Extraordinary General Meeting, convened after the AGM, approved the issuance of a Tier 1 perpetual bond programme at a maximum amount of $2 Billion.
BR), Latin America's largest bank in terms of assets, has launched a USD750m reopening of its perpetual bonds issue on Monday.
The yield on VTB's perpetual bond fell 25 basis points to 9.
633, 1st floor in the city and state of Rio de Janeiro ("BRMALLS"), hereby announces that its subsidiary BR Malls International Finance Limited priced a senior perpetual bond offer in the total amount of US$ 230 million subject to quarter interest payments of 8.
Also, the debenture holders approved the exclusion of the perpetual bond from the definition of Net Debt in the debenture clauses;
Dubai Islamic Bank is issuing a perpetual bond to address its Basel II Tier 1 (13.
Post this perpetual bond issue, the Tier-one now stands at 8.
We do not undertake speculative operations with currency derivatives and we have protected our interest payment cash flow for the perpetual bond for the next 3.
The Sukuk was the GCC's first perpetual bond with no stated maturity.
ADIB is issuing a perpetual bond of USD 1bn with a profit rate of 6.