Bond National Agricultural Credit Banks 2.625% ( US3133EKWK87 ) in USD
| Issuer | National Agricultural Credit Banks | ||
| Market price | |||
| Country | United States
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| ISIN code |
US3133EKWK87 ( in USD )
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| Interest rate | 2.625% per year ( payment 2 times a year) | ||
| Maturity | 25/07/2029 | ||
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| Minimal amount | 1 000 USD | ||
| Total amount | 100 000 000 USD | ||
| Cusip | 3133EKWK8 | ||
| Standard & Poor's ( S&P ) rating | AA+ ( High grade - Investment-grade ) | ||
| Moody's rating | Aa1 ( High grade - Investment-grade ) | ||
| Next Coupon | 25/07/2026 ( In 166 days ) | ||
| Detailed description |
The Federal Farm Credit Banks are a government-sponsored enterprise system providing credit and other financial services to farmers, ranchers, and agricultural cooperatives. A detailed examination of a prominent fixed-income instrument reveals key characteristics pertinent to investors. This bond, identified by ISIN US3133EKWK87 and CUSIP 3133EKWK8, is issued by the Federal Farm Credit Banks (FFCB), a critical government-sponsored enterprise (GSE) in the United States. The FFCB system comprises a network of borrower-owned cooperative lending institutions dedicated to providing a reliable source of credit to American farmers, ranchers, and rural communities, thereby supporting the nation's agricultural and rural economies. Its mission-critical role and implicit government backing underpin its strong credit profile. The bond itself carries a fixed annual interest rate of 2.625%, with coupon payments disbursed semi-annually, aligning with the common practice for such instruments. Denominated in United States Dollars (USD), this security has a total issue size of $100,000,000, with a minimum purchase increment set at $1,000. Its maturity date is firmly established as July 25, 2029, offering a defined investment horizon. Reflecting its perceived safety and the issuer's robust financial standing, the bond boasts exceptional credit ratings: an AA+ from Standard & Poor's (S&P) and an Aa1 from Moody's. These high investment-grade designations signify a very strong capacity to meet financial commitments, with very low credit risk. Investors should note its current market price of 93.351% of par, indicating that the bond is trading at a discount. This provides a potential opportunity for capital appreciation upon maturity and implies a yield to maturity that is higher than its stated coupon rate, making it an attractive consideration for those seeking stable, high-quality fixed-income exposure. |
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