NRUC Pricing Supplement: 4.05% Non-Callable Notes Mature July 2027

Rhea-AI Filing Summary

National Rural Utilities Cooperative Finance Corp. (NRUC) filed Pricing Supplement No. 638 for a new InterNotes^® offering of senior unsecured notes (CUSIP 63743F3P9). The notes are non-callable, carry a fixed 4.050% coupon paid monthly, and mature on 15 July 2027. Investors purchasing at the 100.000% offering price will receive their first coupon of $2.36 on 15 August 2025. The minimum purchase is $1,000 in $1,000 increments. A survivor’s option is included, allowing early redemption upon the holder’s death. The trade date is set for 21 July 2025 with settlement on 24 July 2025. Distribution will be handled through DTC book entry; InspereX LLC, Citigroup Global Markets Inc., Wells Fargo Clearing Services LLC and RBC Capital Markets LLC act as agents, and U.S. Bank Trust Company, National Association serves as trustee.

The filing discloses a 0.550% selling concession; net proceeds amounts are not specified. The offering is made under the base prospectus dated 24 October 2023 and prospectus supplement dated 27 October 2023.

Positive

• Fixed 4.050% monthly coupon offers predictable income over the two-year term.
• Survivor’s option provides early redemption flexibility for estates.
• Non-callable structure eliminates reinvestment risk for investors.

Negative

• Net proceeds amount is not disclosed, giving investors no view on funding scale.

Insights

Fixed Income Analyst

TL;DR Routine two-year senior unsecured InterNotes with 4.05% monthly coupon; neutral credit impact, modest yield for investors.

This filing outlines a standard debt issuance, extending NRUC’s funding through July 2027. A 4.050% fixed monthly coupon may appeal to income-focused buyers seeking regular cash flow. The survivor’s option enhances flexibility for estate planning. Absence of call provision removes reinvestment risk but locks the issuer into current costs. Concession of 0.55% is typical; however, the document omits total net proceeds, limiting insight into financing scale. Overall, this is a low-impact, routine capital markets transaction that neither materially strengthens nor weakens NRUC’s balance sheet based on information provided.

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

Pricing Supplement No. 638 - Dated Monday, July 14, 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

63743F3P9

[ ]

100.000%

0.550%

[ ]

Fixed

4.050%

Monthly

07/15/2027

08/15/2025

$2.36

Yes

Senior Unsecured Notes

Redemption Information: Non-Callable

			Offering Date: Monday, July 14, 2025 through Monday, July 21, 2025			National Rural Utilities Cooperative Finance Corp
National Rural Utilities Cooperative Finance Corp			Trade Date: Monday, July 21, 2025 @12:00 PM ET
			Settle Date: Thursday, July 24, 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.
			InterNotes® is a registered trademark of InspereX Holdings LLC. All Rights Reserved.

FAQ

What is the coupon rate on NRUC's new InterNotes offering?

The notes pay a 4.050% fixed coupon with interest distributed monthly.

When do the NRUC notes mature?

The maturity date is 15 July 2027.

Is there a minimum purchase amount for these NRUC notes?

Yes. The minimum denomination is $1,000, with purchases in $1,000 increments.

Does the NRUC issuance include a survivor’s option?

Yes, holders’ estates may redeem the notes early through the survivor’s option.

Are the NRUC notes callable before maturity?

No. The notes are explicitly non-callable.

When is the first interest payment for the new NRUC notes?

The first coupon of $2.36 will be paid on 15 August 2025.