Perpetual bonds, also known as no bonds, refers not to the provisions of maturity, the creditor can not ask for repayment but can strike a bond interest on schedule.
Perpetual bond interest is generally higher than the issuer's variable interest rate, bonds and more generally for commercial banks. Its purpose is to issue its own funds to expand the strength of the bank.
Permanent bonds and shares similar properties can be obtained long-term investment capital, but not the holder to buy stock, and therefore can not participate in management and profit distribution companies, it is still an indirect investment. From the position in terms of debt repayment when the bond issuer permanent debt crisis, debt repayment prior general, permanent bond repayment in the post.
Holders of perpetual bonds in addition to the discovery of bankruptcy or significant financial events, in general, does not require the company to repay, but only periodically get interest income, in fact, such bonds to lose the general nature of the company's debt, and has stock the feature, which some people think that this is one of the most thorough of corporate bonds. In the US there is a period of several decades or even a century or more corporate bonds, it can also be regarded as a disguised form permanent bonds.