National Rural Utilities offers 4.10% InterNotes®, maturity 2027

Rhea-AI Filing Summary

National Rural Utilities Cooperative Finance Corp (NRUC) filed Pricing Supplement No. 635 under its shelf registration (333-275151) for a $171,000 senior unsecured InterNotes® offering. The notes carry a 4.10% fixed coupon paid monthly, price at 100%, with a gross concession of 0.55% and net proceeds of $170,059.50. The security (CUSIP 63743F3L8) is non-callable, includes a survivor’s option, and matures on 06/15/2027; first coupon date is 07/15/2025 with an initial payment of $2.16 per $1,000 denomination.

The offer window ran from 06/16/2025 to 06/23/2025, with trade date on 06/23/2025 (12:00 p.m. ET) and settlement on 06/26/2025 via DTC (number 0235). Minimum purchase is $1,000 in $1,000 increments. InspereX LLC acts as lead agent alongside Citigroup, Wells Fargo, and RBC; U.S. Bank Trust Company, N.A. serves as trustee.

Legal counsel Hogan Lovells US LLP opines that, upon proper issuance, the notes will constitute valid and binding obligations of NRUC, subject to customary bankruptcy and equitable principles. The opinion is limited to District of Columbia cooperative law and New York state law.

No redemption provisions, credit ratings, or comparative yield metrics are disclosed. Given the modest size of the issuance, the filing is routine and has limited balance-sheet impact but provides investors a short-dated, fixed-rate debt option with monthly income.

Insights

Fixed-Income Analyst

TL;DR: Small $171k 4.10% senior notes, non-callable, due 2027—routine funding, negligible balance-sheet impact.

The issuance is immaterial relative to NRUC’s multi-billion-dollar funding programs; $171k will not move leverage metrics or liquidity profiles. The 4.10% coupon aligns with comparable short-dated investment-grade utility cooperatives. Non-callable structure and monthly pay schedule appeal to retail investors seeking predictable cash flow, and the survivor’s option adds estate planning flexibility. From a credit standpoint, adding senior unsecured debt slightly increases obligations but at a de minimis scale. Overall, the filing is administrative rather than strategic, with neutral impact on existing noteholders or equity investors.

Filed under Rule 424(b)(3), Registration Statement No. 333-275151

Pricing Supplement No. 635 - Dated Monday, June 23, 2025 (To: Prospectus Dated October 24, 2023 and Prospectus Supplement Dated October 27, 2023)

CUSIP Number

Principal Amount

Selling Price

Gross Concession

Net Proceeds

Coupon Type

Coupon Rate

Coupon Frequency

Maturity Date

1st Coupon Date

1st Coupon Amount

Survivor's Option

Product Ranking

63743F3L8

$171,000.00

100.000%

0.550%

$170,059.50

Fixed

4.100%

Monthly

06/15/2027

07/15/2025

$2.16

Yes

Senior Unsecured Notes

Redemption Information: Non-Callable

			Offering Date: Monday, June 16, 2025 through Monday, June 23, 2025			National Rural Utilities Cooperative Finance Corp
National Rural Utilities Cooperative Finance Corp			Trade Date: Monday, June 23, 2025 @12:00 PM ET
			Settle Date: Thursday, June 26, 2025			Prospectus dated October 24, 2023 and
			Minimum Denomination/Increments:$1,000.00/$1,000.00			Prospectus Supplement Dated: October 27, 2023
			Initial trades settle flat and clear SDFS: DTC Book Entry only
			DTC Number: 0235 via RBC Dain Rauscher Inc.
			Agents: InspereX LLC, Citigroup Global Markets Inc., Wells Fargo Clearing Services, LLC, RBC Capital Markets, LLC
			Trustee: U.S. Bank Trust Company, National Association
			If the maturity date or an interest payment date for any note is not a business day (as term is defined in prospectus), principal, premium, if any, and interest for that note is paid on the next business day, and no interest will accrue from, and after, the maturity date or interest payment date.
			Validity of the Notes
			In the opinion of Hogan Lovells US LLP, as counsel to the Company, following (i) receipt by the Company of the consideration for the notes specified in applicable resolutions of the board of directors of the Company and (ii) the due execution, authentication, issuance and delivery of the notes pursuant to the terms of the indenture and the applicable underwriting, agency or distribution agreement against payment therefor, the notes offered by this pricing supplement will constitute valid and binding obligations of the Company, subject to the effect of (a) bankruptcy, insolvency, reorganization, receivership, moratorium and other laws affecting creditors’ rights and remedies (including, without limitation, the effect of statutory and other law regarding fraudulent conveyances and fraudulent, preferential or voidable transfers), and (b) the exercise of judicial discretion and the application of principles of equity, good faith, fair dealing, reasonableness, conscionability and materiality (regardless of whether the applicable agreements are considered in a proceeding in equity or at law), including, without limitation, principles limiting the availability of specific performance and injunctive relief.
			This opinion is based as to matters of law solely on applicable provisions of the following, as currently in effect: (i) the District of Columbia General Cooperative Association Act of 2010 and (ii) the laws of the State of New York (but not including any laws, statutes, ordinances, administrative decisions, rules or regulations of any political subdivision below the state level). In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and its authentication of the notes and the validity, binding nature and enforceability of the indenture with respect to the trustee, all as stated in the letter of such counsel dated October 27, 2023, which has been filed as an exhibit to a Current Report on Form 8-K by the Company on October 27, 2023.
			InterNotes® is a registered trademark of InspereX Holdings LLC. All Rights Reserved.

FAQ

What is the coupon rate on NRUC's new notes?

4.10% fixed, paid monthly.

When do the NRUC 4.10% notes mature?

They mature on June 15, 2027.

How large is the NRUC senior note offering?

The principal amount is $171,000.

Are the NRUC notes callable before maturity?

No, the notes are non-callable.

What is the minimum denomination for purchasing these NRUC notes?

Purchases start at $1,000 with $1,000 increments.

Does the NRUC offering include a survivor’s option?

Yes, investors have a survivor’s option feature.