Virginia Electric and Power Company (VEPCO), now a subsidiary of Dominion Energy, is a major electricity provider serving Virginia and portions of North Carolina.
An analysis of a notable fixed-income instrument reveals a bond issued by Virginia Electric and Power, a prominent regulated electric utility operating primarily in the Commonwealth of Virginia and northeastern North Carolina, serving millions of customers with electricity generation, transmission, and distribution, thereby presenting a stable and predictable revenue stream characteristic of essential service providers subject to regulatory oversight. This specific obligation, identifiable by ISIN US927804FG41 and CUSIP 927804FG4, was issued in the United States, denominated in U.S. Dollars (USD). It carries a substantial coupon interest rate of 8.875% and is structured with a maturity date of November 15, 2038, offering investors a long-term exposure to the issuer's credit. Interest payments are scheduled with a frequency of two times per year, indicative of a semi-annual payment structure. The total size of this particular bond issuance amounts to USD 700,000,000, reflecting a significant capital raise by the utility, with a minimum purchase size set at USD 1,000, making it accessible to a range of market participants. Currently, the bond trades on the market at a price of 129.4% of its par value, suggesting it is trading at a premium, likely reflecting its attractive coupon rate relative to prevailing market yields. The credit quality of this bond is assessed by leading independent rating agencies, with Standard & Poor's (S&P) having assigned a rating of BBB+, and Moody's a rating of A3, both falling within the investment-grade category and signaling the agencies' assessment of the issuer's strong capacity to meet its financial commitments.
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146.24 % ▲ 
United States
US927804FG41 ( in USD )
