The Additional Tier 1 bond is a type of perpetual bond, which means it has no fixed maturity date. As a result, it can be classified as equity rather than debt. These unique bonds function in a way that investors do not receive the principal amount back, and the interest payments are hypothetically perpetual. Although they are considered fixed-income securities, perpetual bonds are an exceptional type of bond.
Have you invested in these bonds? Do share your views, feedback and experience.