Gabbay and Pitts proved that lambda-terms up to alpha-equivalence constitute an initial algebra for a certain endofunctor on the category of nominal sets. We show that the terms of the infinitary lambda-calculus form the final coalgebra for the same functor. This allows us to give a corecursion principle for alpha-equivalence classes of finite and infinite terms. As an application, we give corecursive definitions of substitution and of infinite normal forms (Böhm, Lévy-Longo and Berarducci trees).