National Rural Utilities to Sell Baby Bonds

The National Rural Utilities Cooperative will be selling a new $25 baby bond. The issue will have a maturity date out in 2064. There is an early redemption period starting in May, 2024.

The coupon will be 5.50% and they will be selling 10 million shares (bonds).

National Rural Utilities is a cooperative non profit with $25 billion in assets–as such they have no publicly traded common stock.

The cooperative had outstanding $25 debt years ago as some of us old timers remember and we expect this issue to trade strongly.

This issue is rated BBB+ (investment grade) by Standard and Poors.

The expected ticker is NRUC. Being debt there will be no OTC Grey market trading.

The SEC filing can be found here.

The cooperatives website can been found here.

Thanks to Eugene for the heads up on this more obscure issue.

11 thoughts on “National Rural Utilities to Sell Baby Bonds”

  1. I’m glad to note that this issue does not have an Optional Deferral Period provision… as far as I can tell

    1. Never mind I’m wrong – they call it extending the interest payment instead of deferring

  2. Got some at $25.00. Did anyone beat that? It’s just a game question. Doesn’t matter much for a purchase of a few hundred shares.

    1. mcg–you are correct. It is an obscure issue that doesn’t show up on the radar very well.

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