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 ?
Perpetual bonds are attractive for companies as there is no requirement ever to redeem the bonds
Hutchison Whampoa last sold perpetual bond denominated in dollars in October 2010.
The latest perpetual bond issue was made after roadshows in Singapore and Hong Kong and investor calls in Europe that began last Friday.
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.
In April 2010, Globo tapped the two banks to book-run a USD325m (EUR245m) perpetual bond sale.
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.
On June 10th 2015, the National Bank of Abu Dhabi (NBAD), the safest bank in the Middle-East and Emerging Markets, successfully launched its inaugural $750 million Additional Tier 1 Perpetual Bond and achieved multiple records in the process.
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.
M2 EQUITYBITES-March 15, 2012--Five banks to test demand for Swiss Re's perpetual bond offer(C)2012 M2 COMMUNICATIONS http://www.
BANKING AND CREDIT NEWS-March 15, 2012--Five banks to test demand for Swiss Re's perpetual bond offer(C)2012 M2 COMMUNICATIONS http://www.
Senior unsecured notes and perpetual bond upgraded to 'BBB-', from 'BB+'.