400 years ago, a dike broke in the Netherlands – A company still pays interest for the consequences today

It is a rarity and has survived much: the oldest bond in the world that still earns interest today. Its story begins in 1624.

What kind of interest is that? On December 10, 360 euros in interest were handed over to the New York Stock Exchange (NYSE). Behind this interest is a 400-year-old debt that a company from the Netherlands had to pay off.

The NYSE owns the oldest bond in the world for which interest is still paid – 13.61 euros per year (via Financial Times).

What is a bond? When a person invests money in a company or a state, they receive what is called a bond. The owner of this document is entitled to receive annual interest.

Nowadays, the “Hoogheemraadschap De Stichtse Rijnlanden” (HDSR), a combination of a company and water authority, is responsible for all claims arising from the 400-year-old document (via HDSR).

Much more commonplace yet somehow strange, a whole host of USB sticks appear. They stick out of walls at seemingly arbitrarily chosen spots. The following video explains what it’s all about:

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400 Years and a Gesture of Friendship

What was the bond issued for 400 years ago? In January 1624, winter floodwaters, laden with ice, pressured the beleaguered dikes of the Netherlands and finally breached at Tull and ‘t Waal. Large tracts of land were flooded, and the damage was immense.

To repair the damage to the dike, the then-responsible predecessor authority of the HDSR, Hoogheemraadschap Lekdijk Bovendams, issued more than 50 indefinite bonds. One went to a citizen of Amsterdam, Elsken Jorisdochter.

How did the bond end up in New York? At an unspecified time around the turn of the 19th to the 20th century, Albert Andriesse purchased the bond at an auction. He was a board member of the Amsterdam Stock Exchange. During a trip to New York in 1938, he gifted the document to the NYSE – a gesture of friendship with a historical background. The metropolis was founded as New Amsterdam in the year the bond was issued, 1624.

In 1941, he and his family found a new home in New York while fleeing from the Nazis. His granddaughter attended the ceremony for the transfer of the interest. He himself died in 1965. The NYSE donated the 360 euros in interest to a museum (via Financial Times).

Anyone who wants to take a closer look at the document written on parchment (sheepskin) can find a dedicated subpage for the rarity on the website of the HDSR.

The Last Representatives of Their Kind

Where are the other bonds from that time? Although they are indefinite, they could be redeemed by the lenders at any time. On the other hand, many have disappeared over the centuries since their issuance. The Netherlands and its citizens went through crises, wars, and tremendous upheavals just like the rest of Europe.

Seven remain, all of which were issued to finance investments in the 17th century. With its date of December 10, 1624, this bond is the oldest of them (via HDSR).