Perpetual bonds are a type of fixed-income instrument that do not have a maturity date. Unlike regular bonds, where the issuer is required to repay the principal after a fixed period, perpetual bonds allow the issuer to pay interest indefinitely without any obligation to return the principal. The principal may be repaid only if the issuer chooses to do so.
Perpetual bonds are attractive because they provide investors with a steady stream of interest income indefinitely, often at higher yields than traditional bonds, while also helping issuers strengthen their long-term capital base. They are best suited for investors seeking predictable cash flows and portfolio diversification, though they come with unique risks such as interest rate sensitivity and potential credit stress.
Explore today’s leading Perpetual bond opportunities—strategic yields in a shifting market landscape.
Coupon
8.9
Maturity
Perpetual
Rating
AA+
Face Value
1000000
Yield
8.00
ISIN
INE306N08276
Coupon
9.45
Maturity
Perpetual
Rating
AA
Face Value
500000
Yield
9.25
ISIN
INE121A08PB7
They are called “perpetual” because they can continue indefinitely, paying interest forever unless the issuer exercises a call option or defaults.
Returns come primarily from regular interest (coupon) payments. Investors may also earn capital gains if the bond price rises and is sold in the secondary market.
Yes. Perpetual bonds carry higher risk because they have no maturity date, are usually subordinated, and interest payments may be deferred under certain conditions.
Yes. Issuers—especially banks—may skip or defer interest payments during financial or regulatory stress, without being considered in default.
