CFC Increases Member Capital Securities Interest Rate

CFC recently increased the Member Capital Securities (MCS) interest rate to 5.50 percent from 4.25 percent for new investments. The maturity is 30 years with a non-call period of five years for investment protection.

“MCS allow members to invest in CFC, which strengthens our capital base and supports our ability to provide funding to members,” CFC CFO Ling Wang said. “Like other cooperatives, we rely on our members for the equity capital that reduces our leverage ratio, expands our funding capacity and helps to ensure we are prepared to meet the future financing needs of our members.”

The new MCS rate is currently higher than the rates offered on CFC’s other investment products, including comparable 30-year Medium-Term Note coupons. CFC has the option to redeem MCS five-year from issuance. In addition, MCS investments allow CFC to receive equity credit from the rating agencies.

Members can purchase MCS with a minimum of $25,000, with additional $5,000 increments. With CFC as the paying agent for the MCS program, members have the option to receive the semi-annual interest payments via the efficient ACH payment method on the interest payment dates. 

Visit the CFC Member Website MCS page for the updated prospectus and other investment information. Contact your regional vice president if you have any questions.