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Bonds - Program Summary |
(See the Bonds and Discount Notes Offering Circular for a full description.)
Farm Credit Bonds are high credit
quality, debt instruments issued throughout the
month in various amounts, maturities and structures. Bonds offer
a large degree of structural flexibility, thereby presenting the System’s greatest
opportunity to meet the varied needs of the investor and dealer community.
Bonds may be issued each Business Day and are underwritten by one or more
of the Bond Dealers.
Federal Farm Credit Banks Consolidated Systemwide Medium-Term Notes and Unscheduled Bonds
were previously issued with similar characteristics.
Highlights
High credit quality - Aaa rated by Moody’s*, AAA by Standard & Poor’s* and AAA by Fitch*
A viable alternative to comparable U.S. Treasuries with the potential
for yield enhancement
Interest income is generally exempt from state and local income taxes
Portfolio diversification opportunity
The following is a summary of :
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Program Features
Security Description
Issuance Process
Issuance Activity
Distribution to Investors
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Program Features
Flexible - Structural characteristics can be tailored to meet the varied
needs of investors.
Fixed-Rate Bonds may be callable or non-callable.
Call features can incorporate a variety of terms and characteristics.
Redemption (call) types can be either one-time only, periodic, or at any
time.
Floating-Rate Bonds are generally indexed to LIBOR or the Prime Rate and may be callable or non-callable.
| Security Description |
| Maturities: |
Three months to 30 years, but typically
one to five years
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| Settlement: |
Usually settled within five to seven Business Days
after trade date.
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| Form: |
Issued, maintained and transferred on the book-entry
system of the Federal Reserve Banks.
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| Minimum Denominations: |
Fixed-Rate $5,000 ($1,000 increments
thereafter)
Floating-Rate or Structured $100,000 ($1,000 increments
thereafter)
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| Interest: |
Fixed or floating rates of interest. Interest is
paid on the dates specified in the applicable Term Sheet.
Fixed-Rate interest is computed on a 30/360 day count
basis.
Floating-Rate interest is computed utilizing the day count convention
specified in the Term Sheet by applying one or more of the specified
Reference Rates.
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| Redemption or Call Feature: |
Farm Credit Bonds may have a call feature. The call feature may be in whole (Redeemable Bonds) or may be in whole or in part (Optional Principal Redemption Bonds). The details of the call feature for an issue are fully described in the applicable Term Sheet.
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| Offering Documentation: |
See the Bonds and Discount Notes Offering Circular
Specific terms are described in the applicable Term Sheet.
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| Additional Information for Investors: |
Farm Credit System Annual Information Statements
Farm Credit System Quarterly Information Statements
Financial Press Releases
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Issuance Process
Bonds are underwritten by Bond Dealers in
the selling group through a negotiated or competitive bidding process.
Offering Announcements are posted on Bloomberg FFCB <go>, Reuters FFCB07 & 08, and TradeWeb (Designated Bonds only).
The Funding Corporation will consider investor (reverse) inquiries through
any of the Bond Dealers for specific amounts and structures.
Bonds may be negotiated with a dealer in the selling group
to meet the needs of an investor.
Issuance Activity
See the following links for more information regarding Bond
issuance and outstanding figures:
Bond Issuance - Total amounts issued for
the most recent full month and previous year.
Bonds Outstanding - Summary of outstanding Bonds.
Distribution to Investors
The diversity of maturities, call features and floating-rates of interest
offered by Bonds satisfy the needs of a broad range of investors.
Investors using Bonds include
banks and credit unions, state and local governments, investment managers,
pension funds, insurance companies, central banks, corporations and individuals.
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* The Funding Corporation understands a number of factors contributed to this rating, including: The Farm Credit System's status as a government-sponsored enterprise, which results from its public mission and ties to the Federal government; the traditionally strong governmental support of the agricultural sector; and the System's strong financial performance in recent years, including favorable earnings and strong capital ratios.
Before investing, please read the applicable Farm Credit System offering documentation. Unless otherwise defined, terms will have the meaning set forth in the applicable offering documentation. This document is neither an offer to sell nor a solicitation for an offer to buy any Farm Credit Debt Securities. Farm Credit Debt Securities are offered only by the offering documents available through select dealers. For further information regarding the tax treatment of investments in the Farm Credit Debt Securities, contact your tax advisor.
Farm Credit Debt Securities are the joint and several obligations of the Farm Credit System Banks and are not obligations of and are not guaranteed by the United States or any Federal agency instrumentality, other than the Banks.
May 2001
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