The world’s oldest perpetually paying bond, issued by a Dutch water authority in 1624, recently celebrated its 400th birthday and paid out approximately $300 in interest. The bond is now held by the New York Stock Exchange (NYSE), which acquired it from the Amsterdam Stock Exchange.
The bond was originally sold to raise funds for repairing a damaged dike along the Rhine River after a devastating flood in January 1624. To repay the debt, the water authority agreed to pay interest to the bondholders. This structure has remained largely unchanged to this day.
Perpetual bonds, like the one from 1624, are still issued and traded today. They offer governments an advantage because they don’t require repayment of the initial loan amount, only ongoing interest payments.
The NYSE acquired the oldest bond through a gift from the Amsterdam Stock Exchange’s board member. Today, the annual interest payment for this 400-year-old bond is approximately €13.61 (13 euros and 61 cents). The regional water authority sets aside the money every year.
Jeroen Haan, chair of the Dutch water utility that oversees Utrecht today, sees the perpetual bonds as a connection to his predecessors who safeguarded the country’s water infrastructure.
Source: https://www.kuaf.com/2024-12-13/at-400-years-old-this-bond-from-the-1600s-is-still-paying-interest