What is a century bond?

"Century bond" is a bond loan with a term of one hundred years. Although 'eeuwlening' would be a suitable Dutch translation, this term is hardly used. Despite their name, some 100-year bonds are redeemable early, which means that they can already be repaid before the full term of a century has expired.

A well-known example is the bond issued by Disney in 1993, which was due to expire in 2093 but can be repaid from 2023.

Century bonds offer investors the opportunity to invest in the very long term, but it is important to know that the issuer often has the flexibility to repay the loan early.

Version:
26/9/24