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TVA ANNOUNCES COMPETITIVE BID BOND SALE

 TVA ANNOUNCES COMPETITIVE BID BOND SALE
 KNOXVILLE, Tenn., Aug. 14 /PRNewswire/ -- To take advantage of


declining interest rates, the Tennessee Valley Authority announced today that it will sell $700 million in 30-year bonds by competitive bid. This action is expected to save TVA about $7.5 million annually in interest expenses.
 TVA plans to accept bids on August 18 for the 30-year bonds; however, TVA reserves the right to withdraw the invitation for bids. The 30-year bonds will have a five-year call provision.
 TVA Executive Vice President and Chief Financial Officer William F. Malec said proceeds from the sale will be used to pay off debt held by the Federal Financing Bank. The FFB debt being retired has an average interest rate of more than 10.5 percent. Malec expects the new bonds will have an interest rate of less than 8 percent.
 "Current market conditions give us another good opportunity to lower TVA's interest expenses," Malec said. "The FFB debt that will be refunded is callable beginning in November 1992, so we will invest the proceeds of the bond sale until the call dates on the FFB issues."
 In July, TVA sold $750 million in seven-year bonds and $500 million in 10-year bonds for refinancing purposes. Last month, the TVA Board also announced a new goal to hold revenue needs per kilowatthour at the current level through fiscal year 1995. Achieving this goal would mean eight years of stable electric rates for TVA.
 -0- 8/14/92
 /CONTACT: William F. Malec, Knoxville, 615-632-3987, or B.J. Wright, Knoxville, 615-632-8020, both of Tennessee Valley Authority/ CO: Tennessee Valley Authority ST: Tennessee IN: UTI SU:


JM -- CH004 -- 9903 08/14/92 09:27 EDT
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Date:Aug 14, 1992
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