perpetual bond

(redirected from Perpetual Debentures)

Perpetual bond

Nonredeemable bond with no maturity date that pays regular interest rates indefinitely.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

perpetual bond

See consol.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Fitch has also affirmed the National Long-Term Rating of its secured bonds at 'A(tha)', the National Long-Term Rating of its unsecured bonds at 'A-(tha)' and the National Long-Term Rating of its subordinated perpetual debentures at 'BBB(tha)'.
The outstanding amount of subordinated perpetual debentures is based on the face value due at maturity, instead of net of issuance cost shown in the audited financial statements.
de C.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.
Eligible holders of the perpetual debentures who properly tender their perpetual debentures by the second revised early tender date will receive an additional fee of USD30 payable in additional principal amount of new senior secured notes per USD1,000 of principal amount tendered for the USD--denominated perpetual debentures, and USD30 payable in additional principal amount of new senior secured notes per EUR1,000 of principal amount tendered for the Euro-denominated perpetual debentures.
In addition, EUR447,892,000 in aggregate principal amount, or 61.36% of outstanding Euro-denominated 6.277% fixed-to-floating rate callable perpetual debentures had been properly tendered under the offers and not withdrawn.