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Created and Owned by America's Electric Cooperative Network
 

CFC Sells $800 Million of Collateral Trust Bonds

FOR IMMEDIATE RELEASE


For Release: February 02, 2012

Contact: Ling Wang, Brad Captain

DULLES, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU, NRC) has closed its previously announced underwritten public offering of $800 million in collateral trust bonds (CTBs).

CFC sold $400 million of three-year bonds and $400 million of 10-year bonds.

“We initially accessed the capital markets with a $500 million transaction. We upsized the offering because of overwhelmingly strong demand from investors,” CFC CEO Sheldon C. Petersen said. “The market reaction to this sale is a reflection of CFC’s expanding financial strength and underscores the stability of the electric co-op network.”

The three-year bonds priced at a spread of 80 basis points over the yield on the three-year benchmark U.S. Treasury; the 10-year bonds priced at a spread of 115 basis points over the yield on the 10-year benchmark U.S. Treasury. The bonds are rated A1 by Moody’s Investors Service and A+ by Standard & Poor’s Corporation.

“CFC is constantly monitoring the capital markets to be prepared to take advantage of good issuance windows,” CFC Treasurer Andrew Don said. “The combination of a favorable market and rate environment along with strong investor interest gave CFC the leverage to drive down credit spreads and realize a very attractive all-in coupon.”

Net proceeds from the offering will be used for the repayment of short-term and other term debt as well as other general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About CFC

The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit finance cooperative created and owned by America’s electric cooperative network. With $20 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners.

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Contact

Ling Wang
CFC Banking & Investor Relations
InvestorRelations@nrucfc.coop
800-424-2954

Brad Captain
Corporate Communications
PublicRelations@nrucfc.coop
800-424-2954