Bond Mercedes-Benz Financial Services North America 5.375% ( USU5876JAB18 ) in USD
Issuer | Mercedes-Benz Financial Services North America |
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Interest rate | 5.375% per year ( payment 2 times a year) |
Maturity | 25/11/2025 |
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Cusip | U5876JAB1 |
Standard & Poor's ( S&P ) rating | A ( Upper medium grade - Investment-grade ) |
Next Coupon | 26/11/2025 ( In 108 days ) |
Detailed description |
Mercedes-Benz Financial Services USA, LLC, a subsidiary of Daimler Financial Services, provides financing and leasing options for Mercedes-Benz and smart vehicles in the United States, including retail financing, leasing programs, and various financial products and services to support Mercedes-Benz dealers and customers. An analysis of the fixed-income instrument identified by ISIN USU5876JAB18 (CUSIP U5876JAB1) reveals a bond issued by Mercedes-Benz Finance North America, carrying a competitive annual interest rate of 5.375% with semi-annual payment frequency, denominated in U.S. Dollars. This particular debt security, currently traded at 100.279% of its par value, is set to mature on November 25, 2025, offering investors a short-to-medium term investment horizon. The issuer, Mercedes-Benz Finance North America, operates as a vital financial services arm of the globally renowned Mercedes-Benz Group AG, headquartered in Germany. Its primary function involves supporting the sales and operations of Mercedes-Benz vehicles and related products throughout the North American market by providing comprehensive financing and leasing solutions to both retail and wholesale clients, thereby playing a critical role in optimizing cash flow, managing financial risks, and ensuring strategic financial support for the parent company's extensive automotive operations. Despite the 'North America' designation in its name, the bond's country of issuance is listed as Germany, underscoring the integrated global financial structure of the Mercedes-Benz Group. The creditworthiness of this bond and its issuer is underscored by a robust 'A' rating from Standard & Poor's (S&P), which indicates a strong capacity to meet financial commitments, though potentially more susceptible to adverse economic conditions or changes in circumstances than higher-rated obligations. |