perpetual bond


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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 ?
In December last year, the bank in its filing to the MSM announced that it had received the approval from the Capital Market Authority (CMA) for the allotment of perpetual bonds worth RO54mn in single or multiple tranches.
Perpetual bonds are attractive for companies as there is no requirement ever to redeem the bonds
Second, in case of bankruptcy, depositors' claims are considered prior to that of perpetual bond holders.
In addition the rating of GOL's 8.75% perpetual bond issue was upgraded from BB to BB+.
SMC GLOBAL Power, a power generation firm under conglomerate San Miguel Corp., has raised $300 million from its latest foray into the offshore perpetual bond market.
Muscat: BankDhofar has set initial price thoughts (IPT) for a $300 million no-grow, non-call five-year perpetual bond issue in the seven per cent area, according to lead managers.
17 November 2009 - Norwegian SpareBank 1 SR-Bank (OSL: ROGG) said Tuesday it was ready for the launch of a tier 1 perpetual bond, which was first announced on 25 September 2009.
The additional tier 1 perpetual bond issue of the bank was successfully managed by Gulf Baader Capital Markets, who acted as the financial advisor, lead issue manager and placement agent.
The perpetual bond is callable after 7.5 years and was priced last week at a yield of 5.25 percent.
Muscat: Oman's Bank Dhofar, the Sultanate's second-largest lender by assets, has picked three banks to arrange fixed income meetings starting on Thursday for a potential capital-boosting perpetual bond issue, a document from lead arrangers showed.
Although the perpetual bond is a new financial product in the Thai debt capital market, the transaction attracted robust participation from investors which reflects investors confidence in both IVL s business and its financial stability.
M2 EQUITYBITES-May 2, 2012--Goldman, HSBC to handle Hutchison Whampoa's USD perpetual bond offer(C)2012 M2 COMMUNICATIONS http://www.m2.com