5.5% NRUC (NRUC) subordinated notes due 2056, callable from 2031
Rhea-AI Filing Summary
National Rural Utilities Cooperative Finance Corp is offering subordinated deferrable interest notes due February 15, 2056. The notes are priced at 100.000% of principal and pay a fixed 5.500% annual coupon, with interest paid semi-annually starting on August 15, 2026.
These notes include a survivor’s option and are callable at the issuer’s option, in whole or in part, at 100% of principal plus accrued interest on any day on or after February 15, 2031. The offering runs from February 2, 2026 through February 9, 2026, with a trade date of February 9, 2026 and settlement on February 12, 2026. The minimum denomination is $1,000 and integral multiples of $1,000.
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FAQ
What are the key terms of National Rural Utilities (NRUC) 5.500% subordinated notes?
The notes are subordinated deferrable interest notes with a fixed 5.500% annual coupon, maturing on February 15, 2056. Interest is paid semi-annually, starting August 15, 2026, and the issue price is 100.000% of principal amount.
When can National Rural Utilities (NRUC) call these subordinated notes?
The notes are callable at the issuer’s option on any day on or after February 15, 2031. Redemption is at 100% of principal plus accrued and unpaid interest to, but excluding, the redemption date, in whole or in part.
What is the offering and settlement schedule for NRUC’s 2056 subordinated notes?
The offering period runs from February 2, 2026 through February 9, 2026. The trade date is February 9, 2026 at 12:00 ET, with settlement scheduled for February 12, 2026 through DTC book-entry only.
What are the minimum denomination and increments for NRUC’s subordinated notes?
The notes have a minimum denomination of $1,000 with increments of $1,000. They are issued in book-entry form through DTC, allowing investors to purchase in standardized, relatively small principal amounts suitable for many fixed-income portfolios.
How is compensation structured for agents selling NRUC’s subordinated notes?
Notes are sold at the stated selling price, with a gross concession of 3.150%. The purchasing agent buys from the issuer at the selling price less this concession and may resell to agents or dealers at a reduced concession at its discretion.
Do NRUC’s 5.500% subordinated notes include a survivor’s option?
Yes, the notes include a survivor’s option. This feature generally allows the estate of a deceased beneficial owner to request repayment at par, offering an additional estate-planning flexibility compared with standard non-survivor bond structures.