China is set to finally see its first onshore perpetual bonds after an initial trial failed earlier this year but hopes are slim that more will follow suit anytime soon.
Wuhan Metro, an AA rated company by domestic ratings agency China Chengxin, closed bookbuilding for its Rmb2.3 billion $378 million corporate bond issuance on Tuesday.
A perpetual bond is a bond with no maturity date and may be treated as equity, not as debt. Issuers pay coupons on perpetual bonds forever, and they do not have to redeem the principal.
The notes can be regarded as perpetual bonds because they have no fixed...