WASHINGTON - AgriBank FCB of St. Paul, Minn., said it would redeem $133 million in "assistance preferred stock" this year rather than wait until 2003.
The preferred stock was used to provide financial aid to the former Farm Credit Bank of St. Paul under a 1987 federal bailout of the U.S. Farm Credit System. Last May, the St. Paul and St. Louis Farm Credit banks merged to create AgriBank FCB.
AgriBank plans to give a zero coupon Treasury bond around Dec. 1 in exchange for assistance preferred stock.
The bank is the wholesale lender for 34 Farm Credit services in seven midwestern states. Together, these institutions have more than $10 billion in loans outstanding.