perpetual bond

(redirected from perpetual debenture)
Also found in: Dictionary.

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 company has elevated additional information to its web site on each Upper Tier 2 and Tier 1 perpetual debenture, including CUSIP numbers for each security, book and market values, ratings and more.
With no action taken by the FASB in the fourth quarter, Aflac continued to apply its debt impairment model to its perpetual debenture investments, which Aflac has applied for reporting periods commencing after June 30, 2008.
Recent market activity has weakened the perpetual debenture securities' valuation over recent months.
The perpetual debenture portfolio is largely invested in European banks, some of whom have been under considerable financial stress.
The issue size, although originally targeted at THB 10,000 million, was upsized to THB 15,000 million, the largest ever issue of corporate perpetual debentures in Thailand, to accommodate excess demand from investors with an over-subscription of around 1.
75% Notes due 2014 (the "Eurobonds") and outstanding series of Perpetual Debentures for new senior secured notes to be denominated in Dollars or in Euros.
196% Fixed-to-Floating Rate Callable Perpetual Debentures issued by C5 Capital (SPV) Limited, at U.
euro]147 million of Perpetual Debentures issued by a special purpose vehicle
277% Fixed-to-Floating Rate Callable Perpetual Debentures (ISIN: XS0300179198; Common Code: 030017919) issued by C-10 EUR Capital (SPV) Limited and held by the investor (including accrued interest thereon) for U.
Total debt plus perpetual notes decreased US$1,581 million, reflecting prepayments under the Financing Agreement, a positive conversion effect during the quarter, as well as a reduction in debt resulting from the exchange of a substantial portion of our perpetual debentures for new senior secured notes.
437 million during the current quarter, as a result of the recently completed exchange of the company's outstanding perpetual debentures for U.