CFC Syndications Mark 20 Years of Member-Focused Innovation

Twenty years ago, CFC launched its syndication program in response to a growing need among electric cooperatives for larger, more flexible financing solutions. What began as a strategic financing directive has evolved into a cornerstone of CFC’s financial services, now holding a dominant position in the electric cooperative syndicated loan market.

Origins Rooted in Member Need

The genesis of CFC’s syndication program dates back to 2004–2005, when the generation and transmission (G&T) sector was preparing for a major construction phase.

“G&Ts were letting CFC know that they would need a lot of financing, primarily in the form of lines of credit with potential term-out,” CFC CEO Andrew Don explained. “These were very large financing needs, larger than what would be prudent to have completely on our balance sheet by itself.”

CFC recognized the scale of upcoming generation projects would require more capital than it could provide alone. By leveraging member relationships and educating external banks about the cooperative sector, CFC was able to build a syndication model that worked for its members.

CFC led its first syndication in September 2005—a five-year $650 million revolving credit facility with 16 banks for East Kentucky Power Cooperative. This inaugural transaction was not only a milestone for CFC, but also a pivotal moment for the electric cooperative sector, as it demonstrated the viability of syndications tailored to cooperative needs.

Lessons Learned and Early Challenges

CFC’s syndication program was a novel concept that had to overcome numerous challenges along the way. The team pioneered new administrative processes and took the lead in educating partner banks about the cooperative sector.

“Starting fresh gives us the unique advantage of designing from the ground up—not constrained by old processes—so we can deliver a tailored solution from day one that directly serves our members’ priorities,” CFC CFO Ling Wang said. “We worked closely with our banking partners, setting clear expectations and defined roles, while ensuring our members felt comfortable throughout the process, even post-closing. For us, it’s not just about doing the transaction and walking away; it’s about supporting our members on a daily basis.”

CFC worked with major banks to share risk and create a stable foundation. Over time, CFC has refined its approach to anticipate market changes and adapt its strategies to better serve the evolving needs of cooperatives.

The syndications team ensures seamless coordination between arranging and performing post-closing administrative duties. CFC’s role as lead arranger includes structuring, marketing and distributing deals, while its administrative agent duties involve ensuring ongoing compliance, coordinating communications and managing day-to-day operations of the syndicated credit facilities as well as flow of funds.

“We’ve built a system that works for our members,” Don said. “It’s not just about the financing; it’s about the relationships and the long-term value we provide.”

Growth and Market Leadership

Since 2005, CFC has served as lead or joint lead arranger on 129 of the 173 syndicated loan transactions in the electric cooperative sector—capturing a 75% market share. In that time, CFC has closed $39 billion in syndicated loans, steadily growing deal flow from three to five transactions per year to eight to 10 or more annually, averaging $2.4 billion a year in volume since 2015.

As of September 2025:

• CFC is the administrative agent for 27 of the 34 active syndicated credit facilities in the electric cooperative sector, totaling $9.8 billion.
• 26 of those facilities serve G&T borrowers, with one serving a distribution cooperative.
• CFC has completed 12 syndicated transactions totaling $3.9 billion this year, which is 86% of the industry’s deal count and 72% of its volume.

The syndication program has evolved from a niche offering to a widely accessible solution for all CFC members, and its success wouldn’t be possible without a few key players who have helped perfect the process. Don acknowledged Wang and CFC Vice President of Capital Markets Relations Heesun Choi for their valuable efforts and contributions to the program’s success.

“Ling has been with us since the beginning, helping lay the foundation for everything we’ve built. We had to be creative, we had to be thoughtful, and we had to build this essentially from square one,” Don said. “Heesun has also been a tremendous asset to the team. Her dedication and reliability have been key to keeping our work on track and expanding the program.”

Looking Ahead: Cooperative Securities and Future Strategy

CFC’s financing strategy continues to evolve. The recent launch of Cooperative Securities as a separate broker-dealer whose purpose is to provide placement agent services to electric cooperatives and their affiliates, represents a natural extension, offering long-term syndicated financing solutions tailored to cooperative needs.

“We’ve excelled at syndication, and now we’re extending that expertise to private placements,” Wang explained. “We educated banks, and now we’re educating fixed-income investors, like insurance companies, on the strengths of the cooperative business model.”

This shift is a strategic move designed to deepen investor understanding and broaden access to capital for electric cooperatives. CFC draws on its expertise, reputation and relationships to connect cooperatives with institutional investors who may not yet recognize the sector’s stability and resilience.

Cooperative Securities completed its first private placement transaction with Texas’ Grayson-Collin Electric Cooperative in February 2024. Since then, it has executed six transactions, totaling $1.3 billion.

Cooperative Securities plans to build on its success by broadening its investor base and refining its offerings. The next phase will focus on educating institutional investors about the cooperative model’s unique strengths—long-term stability, member-driven governance and consistent performance across economic cycles, while expanding funding sources to benefit members.

“We’re not just scaling, we’re innovating,” Wang added. “Our goal is to make syndications more accessible, more flexible and more impactful for our members, while also educating them and introducing tools they can use if and when they need them.”

At the heart of CFC’s syndication program, and its future, is CFC’s continued mission of listening to its members and building solutions that last.

“What makes me most proud is how we’ve grown this program from a concept into something that truly serves our members,” Don concluded. “It’s a testament to the cooperative model and the strength of our team.”