PERPETUAL BONDS

Perpetual bonds as the name suggests are perpetual in nature, means they do not have any maturity date. Only the issuer has the option of calling it back but the buyer of the bonds cannot sell it to the issuer before the call option is exercised by the issuer. Generally, the call option dates are every 5 years from the bond issuance date.
However perpetual bonds in India are listed on stock markets, so if an investor wants liquidity then they can sell the bonds on the stock exchange.

These bonds are generally issued by large manufacturing companies or by banks to fund their long-term capital requirements. In banks, the perpetual bonds come under as Additional Tier 1 bonds which gives it features of Quasi Equity. Which Means that in case of bank winds up then the Investors in Perpetual bonds will be paid last but before equity investors.