CFC Closes $1 Billion Offering in Favorable Market Environment

CFC has completed a $1 billion market transaction evenly split between two-year senior notes and 10-year collateral trust bonds at spreads of 27 and 68 basis points over the two-year and 10-year benchmark U.S. Treasury rates due December 31, 2021 and November 15, 2029, respectively. The proceeds will be used by CFC for general corporate purposes.

“This was a great effort by our team to take advantage of a very favorable market environment,” comments Chief Financial Officer J. Andrew Don. “This was the lowest 10-year bond ever issued by CFC. The prior low was in January 2015.”

Don adds: “CFC’s bond issuances continue to be highly sought by a wide range of investors, reflecting how favorably our credit is viewed by the investment community. We believe our credit is a reflection of the value of our electric cooperative members.” 

The majority of investors in the offering are based in the United States, predominantly representing asset managers, insurance companies and pension funds.