perpetual bond

(redirected from Perpetual bonds)

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 ?
75 per cent, which compares well with the perpetual bonds issued by other banks in Oman," said, Sasi Kumar, acting chief executive officer of Bank Sohar
Perpetual bonds valued at RO50mn will be issued by Oman International Investment and Development Company (Ominvest), a leading investment holding company in the Mena region.
MC) has said that it is to offer perpetual bonds that small shareholders and bondholders from Banco Popular can subscribe to.
Shareholders approved the issuance of Additional Tier 1 Capital Instruments in the form of perpetual bonds through a private issue aggregating of OMR 100 million (OMR 70 million +/- OMR 30 million as a 'green shoe option') with a nominal value of OMR 1,000 per bond.
The Board of Directors of NLMK Group, an international steelmaking company with operations in Russia, the USA and EU member states has confirmed the terms for a new multiple currency perpetual bonds issue programme at a meeting on October 28th.
5-percent per annum perpetual bonds, which are not redeemable until 5.
Renaissance Services shareholders approved issuance of perpetual bonds worth up to $200 million.
During the meeting, His Highness the Deputy Premier commended the level of growth and development of existing solid fraternal bilateral ties based on strong perpetual bonds and mutual cooperation between the two countries.
The Greek government is offering to abandon the demand for a new haircut of Greek debt and to go instead for swabbing their debt with growth-indexed and perpetual bonds -- this implies an indirect haircut if it's going to be any relief of the tax burden -- and the breathing space for Greece to restart economic growth.
The increase, which may happen in the third or fourth quarter of this year, could be "pure capital" or perpetual bonds or both, chief executive Eduardo Eguren said, depending on discussions with regulators and shareholders.
And it will make it possible for banks to approve Hanjin's plan to issue perpetual bonds totaling 400 billion won," said the KDB official.
Perpetual bonds are an attractive funding option for companies as there is no requirement ever to redeem the bonds.