Irredeemable Debentures
Irredeemable debentures are a type of long-term debt instrument issued by a company. Unlike redeemable debentures, which can be repaid after a specific period, irredeemable debentures do not have a fixed maturity date, meaning they cannot be redeemed (paid back) unless the company is sold or liquidated. Holders of irredeemable debentures will continue to receive interest payments as long as the company remains operational. However, the principal amount is not repaid unless the company is wound up or sold. These debentures are considered more risky for investors because of their indefinite maturity, but they often offer higher interest rates to compensate for this risk.
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