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CFC Issues $1.12 Billion in Secured and Unsecured Bonds.

HERNDON, Va. -- National Rural Utilities Cooperative Finance Corporation (CFC) announced today that it recently sold a total of $1.12 billion in secured and unsecured bonds to meet its members' need for capital. The notes were sold to investors in three tranches:

Secured Collateral Trust Bonds

* $570 million of fixed-rate Collateral Trust Bonds rated A+/A+/A1 by Fitch Ratings, Standard & Poor's and Moody's Investors Service, respectively. The bonds carry a maturity of 10 years on a non-callable basis and were priced at a spread of 85 basis points over the 10-year U.S. Treasury Bond for a yield of 5.49%.

Unsecured Medium-Term Notes

* $300 million of floating-rate Extendible Medium-Term Notes (MTNs), rated A/A/A2 by Fitch Ratings, Standard & Poor's and Moody's Investors Service, respectively. The notes carry an initial maturity of two years and a final maturity of seven years, with a quarterly option for investors to extend the maturity date. The interest rate paid on these securities is indexed to three-month LIBOR beginning at a spread of 6 basis points over three-month LIBOR and increasing to 11 basis points by the seventh year.

* An additional $250 million of floating-rate Extendible MTNs, rated A/A/A2 by Fitch Ratings, Standard & Poor's and Moody's Investors Service, respectively. These notes carry an initial maturity of 13 months and a final maturity of seven years, with a monthly option for investors to extend the maturity date. The interest rate paid on these securities is indexed to three-month LIBOR beginning at three-month LIBOR flat and increasing to three-month LIBOR plus 5 basis points by the seventh year.

CFC is a not-for-profit finance cooperative that serves the nation's rural utility systems, the majority of which are electric cooperatives and their subsidiaries. With approximately $18 billion in assets, CFC provides its member-owners with an assured source of low-cost capital and state-of-the-art financial products and services.

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Publication:Business Wire
Date:Apr 16, 2007
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