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 Designated Bonds - Program Summary |
(See the Bonds and Discount Notes Offering Circular for a full description.)
Farm Credit Designated Bonds are high credit
quality, liquid, non-callable and callable securities. New issues of
Designated Bonds are $1 billion or larger for non-callable securities
and $500 million or larger for callable securities. Reopens of existing Designated
Bond issues are generally a minimum of $100 million. Designated Bonds generally have
a two to ten year original maturity and are offered through a syndicate of two
to six Bond Dealers. Callable Designated Bonds will contain one-time only "European"
redemption features.
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
New non-callable issues are a minimum of $1 billion.
New callable issues are a minimum of $500 million.
Priced at levels comparable to other similar quality liquid bonds.
Broad investor distribution both domestically and internationally.
Included in the Lehman Brothers® Aggregate Bond Index.
Security Description |
| Maturities: |
Typically two through ten years
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| Settlement: |
Usually settled within two to five Business Days
from the day of pricing.
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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: |
$5,000 ($1,000 increments thereafter)
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| Interest: |
Interest is paid semi-annually
using a 30/360 day count convention. New Designated Bond interest
rates are set at pricing by rounding down to the nearest .125%, similar to U.S. Treasury Note auction conventions.
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| Redemption: |
Callable issues will contain one-time
only "European" redemption features.
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| Offering Documentation: |
See the Bonds and Discount Notes Offering Circular
Specific terms are described in the Offering Announcement and
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
Designated Bond offerings are announced quarterly (as needed) and offering announcements are posted on Bloomberg FFCB <go>, Reuters FFCB03, and TradeWeb.
Each Designated Bond, whether a new issue or a reopen, is brought to
market through a syndicate comprised of two to six Bond Dealers acting
as joint Lead and Co-Managers.
Many Designated Bond offerings also provide all Bond Dealers
the opportunity to offer these securities.
Issuance Activity
See the following links for a current listing of Designated Bonds issued
and outstanding.
Designated Bond Issuance – Individual Designated
Bond transaction detail.
Designated Bonds Outstanding – Summary of outstanding Designated Bonds.
Distribution to Investors
Designated Bonds are distributed to a broad range of investors including banks and credit unions, state and local governments, investment managers,
pension funds, insurance companies, central banks, corporations and individuals.
The following charts provide a sample distribution of Designated
Bonds, which are only offered and sold in the U.S., by investor account type and geographic distribution.
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1Offered and sold in the U.S.
2Based on reported sales by selling group dealers.
3May include information on investors who wish to remain anonymous.
* 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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