Perpetual bonds are different from normal bonds as they don't have a maturity date and would give interest yields for an indefinite period.
The board has additionally provided an in-principle approval for the issuance of a foreign currency
perpetual bond of up to Rs 7,000 crore subject to price, market conditions and terms and conditions as acceptable, and such conditions allowing for full accounting equity credit and subject to all applicable laws including under ECB regulations.
Total amount of CNY7.2 billion
perpetual bond and perpetual trust have been reclassified as debt from equity in parent company leverage calculation.
The issuance of the
perpetual bonds is part of the company's strategic plan, which was approved by the board early this year.
Perpetual bonds are an attractive funding option for companies as there is no requirement ever to redeem the bonds.
The total volume of secondary
perpetual bond market is about $527.6 billion, with the overwhelming majority issued by private corporations, or rather banks.
A
perpetual bond of up to one billion dollars (about Rs 7,000 crore) denominated in foreign currency is "subject to price, market conditions and other terms and conditions as acceptable, and with conditions allowing for full accounting equity credit and subject to all applicable laws," it said in a communication to stock exchanges.
The issuance represents the first ever
perpetual bond from Megaworld and its return to the international bond market after five years.
Bank Sohar's
perpetual bond issue, made public on 14 August and 7 September 2017 with a subscription for up to 100,000
Perpetual bond, Additional Tier I Capital Instruments on a Private Placement basis, at a price of OMR 1,000 per Capital Security, aggregating up to OMR 100 million (the "Issue) has been fully subscribed.
Abu Dhabi: The National Bank of Abu Dhabi (NBAD), the safest bank in the Middle-East and Emerging Markets, successfully launched its inaugural USD 750mn Additional Tier 1
Perpetual Bond and achieved multiple records in the process.
The bank said it may offer "hybrid Tier 1 perpetual dollar-denominated" sukuk after the meetings, "subject to market conditions." A
perpetual bond has no fixed maturity date, while a hybrid security has features of both debt and equity instruments.
18 November 2009 - Norwegian SpareBank 1 SR-Bank (OSL:ROGG) said yesterday that its tier 1
perpetual bond in the domestic bond market was fully subscribed and the issued volume is NOK800m.
