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ItalianoBond DTE Electric 4% ( US23338VAA44 ) in USD
| Issuer | DTE Electric | ||||||||||
| Market price |  86.7824 % ▼ |
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| Country |  United States
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| ISIN code |
 US23338VAA44 ( in USD )
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| Interest rate | 4% per year ( payment 2 times a year) | ||||||||||
| Maturity | 04/01/2043 | ||||||||||
| Minimal amount | 1 000 USD | ||||||||||
| Total amount | 375 000 000 USD | ||||||||||
| Cusip | 23338VAA4 | ||||||||||
| Standard & Poor's ( S&P ) rating | A ( Upper medium grade - Investment-grade ) | ||||||||||
| Moody's rating | Aa3 ( High grade - Investment-grade ) | ||||||||||
| Next Coupon | 04/01/2027 ( In 139 days ) | ||||||||||
| Detailed description |
DTE Electric is a Detroit-based energy company providing electricity and natural gas service to approximately 2.2 million customers in southeastern Michigan. A fixed-income instrument issued by DTE Electric, identifiable by ISIN US23338VAA44 and CUSIP 23338VAA4, represents a notable offering in the U.S. bond market. DTE Electric, a prominent utility company based in the United States, serves as the issuer of this bond. As a key subsidiary of DTE Energy, it operates as a regulated electric utility, providing essential electricity service to approximately 2.3 million customers across southeastern Michigan. The company's operations are fundamental to the energy infrastructure of its service territory, encompassing power generation, transmission, and distribution, which typically contribute to stable and predictable revenue streams, making it a generally reliable entity within the utilities sector. This particular bond, denominated in U.S. Dollars (USD), carries a fixed coupon rate of 4%, with interest payments disbursed semi-annually, reflecting a payment frequency of 2 per year. The total initial offering size for this issuance was a substantial $375,000,000, indicating a significant capital raise by the issuer. Investors seeking to acquire this bond can do so with a minimum purchase size of $1,000, making it accessible to a range of institutional and individual investors. Its long-term nature is highlighted by a maturity date of April 1, 2043, positioning it as a significant duration asset within a diversified fixed-income portfolio. Currently, the bond is trading on the market at 86.7824% of its par value. This market price indicates that the bond is trading at a discount, which can imply a higher yield-to-maturity for new investors compared to its nominal coupon rate, reflecting prevailing market conditions, interest rate environments, or specific investor demand dynamics. From a credit risk perspective, the bond benefits from strong investment-grade ratings from two of the leading credit rating agencies. Standard & Poor's (S&P) has assigned an 'A' rating, while Moody's has provided an 'Aa3' rating. Both ratings fall comfortably within the high investment-grade category, signifying a low expectation of default and strong capacity to meet financial commitments. These ratings reflect DTE Electric's robust financial health, stable operational profile as a regulated utility, and its critical role in energy provision within its service area. In summary, this DTE Electric bond offers investors exposure to a stable utility sector entity, backed by strong credit ratings and a predictable semi-annual coupon, with its current market valuation at a discount potentially providing an interesting entry point for those seeking long-term fixed-income exposure in the U.S. market. |
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