Cooperative Securities Powers Access to Long-Term Capital

The electric cooperative sector has seen a steady increase in capital requirements over the years, driven by infrastructure investments and system growth. Historically, most cooperatives needing a large infusion of long-term debt beyond what CFC or a bank would lend lacked direct relationships with institutional investors and placement agents, which could make it difficult and time-consuming to secure needed financing.    

CFC recognized this gap and responded with the launch of a registered broker-dealer, Cooperative Securities, FINRA and SIPC member and a wholly owned subsidiary of CFC affiliate NCSC, which acts as a placement agent for the electric cooperative network. 

Cooperative Securities represents a strategic expansion of CFC’s mission to support electric cooperatives with additional financing options. Developed in response to evolving member needs and market dynamics, this initiative builds on CFC’s current services, providing a new pathway for long-term capital access.   

“This was the natural evolution in terms of acting as an arranger of external funding,” CFC CEO Andrew Don said. “We have been the market leader in the bank loan space for syndicated credit facilities, and now Cooperative Securities can help  cooperatives secure financing for 10 to 30 years in the private placement market.”   

This new entity leverages CFC’s experience in the bank loan market, where syndication strategies have helped members access short-term debt. Cooperative Securities extends this knowledge to longer-term financing, supporting cooperatives to fund major projects with greater flexibility.   

Personalized Service and Partnership   

Cooperative Securities assists members throughout the private placement process, providing advisory services, general market data and support to help structure offerings, prepare investor facing material and identify applicable regulatory considerations.  

“We want to give you a customized solution, not just a formula,” CFC CFO & Cooperative Securities CEO Ling Wang said. “We limit the number of transactions we engage in at any given time to ensure we can devote sufficient attention to each member and guide them through the process.”   

Cooperative Securities can provide each cooperative dedicated attention and solutions tailored to its specific goals. By acting as a trusted intermediary, Cooperative Securities opens doors to a broader network of potential investors, including those unfamiliar with cooperative credit, which can lead to more competitive pricing and stronger investor relationships.   

“Every member is a big fish in our pond,” Wang said. “If you deal with one of the large banks, you are one of maybe ten transactions they are working on, and you’re just a number. For us, our members are our owners, so that’s very different.”   

Members also benefit from greater control throughout the offering process. As a cooperative-owned entity, Cooperative Securities prioritizes efficiency while keeping members at the center of every step, from planning to execution.   

Operational Achievements   

Although formed in 2022, Cooperative Securities completed its first transaction in early 2024 and has since executed six transactions totaling $1.3 billion for electric cooperatives. In 2024 and 2025 alone, Cooperative Securities accounted for approximately 40% of all electric cooperative private placement activity, both by deal count and transaction volume. These transactions have delivered competitive pricing and streamlined processes, earning positive feedback from participating members.    

“Recent transactions have been well-received by the market, and feedback from participating members has been positive,” Don said. “Members value having a dedicated agent providing transparent support at a reasonable cost, while keeping their goals in mind. Our sole focus is achieving the best possible outcome for the borrower.”  

A recent example is the June 2025  transaction for Texas-based Grayson-Collin Electric Cooperative (GCEC), a 100% CFC borrower that has experienced significant growth in its service territory over the past decade. Due to GCEC’s substantial capital expenditure needs, CFC introduced private placements via Cooperative Securities in 2024 as an alternative source of funding. 

Cooperative Securities completed GCEC’s first private placement that year, connecting the cooperative with a network of institutional investors. When additional capital needs arose in 2025, GCEC again turned to Cooperative Securities to access the market. The follow-up transaction attracted many returning participants, and the process was notably more efficient, with a faster execution timeline compared to the initial deal. 

Another transaction is the September 2025 for Texas-based Guadalupe Valley Electric Cooperative (GVEC), which secured the tightest spread over Treasurys for cooperative private placement transactions this year. GVEC has historically participated in the private placement market, but this was its first experience working with Cooperative Securities.   

“We took the time to truly understand their goals and tailored every aspect of our approach to meet their specific needs,” Wang said. “As a result, the GVEC transaction was seamless. We focused on making the process as efficient and stress-free as possible.”   

Looking Ahead: Strengthening Cooperative Resilience   

Cooperative Securities is well positioned to play an increasingly important role in the cooperative finance landscape. As capital needs continue to grow and the private placement market evolves, the entity’s member-focused approach and market knowledge lend themselves towards helping electric cooperatives secure the long-term funding they need to thrive.   

Looking ahead, Cooperative Securities plans to broaden its institutional investor base, while also educating prospective investors about the strength, stability and reliability of the electric cooperative sector.   

“As a new venture, our goal is to establish Cooperative Securities as the broker-dealer for electric cooperative private placement transactions,” Wang said. “We want to educate investors on the electric cooperative credit market, and over time, we hope that will lead to a pricing benefit or increased investor interest—ultimately broadening the network and increasing competition.”   

By fostering trust, delivering tailored solutions and promoting cooperative principles, Cooperative Securities is not only available to assist with meeting immediate financing needs but also strengthening the sector’s long-term resilience.   

“We believe the cooperative sector is best served by having its own placement agent, rather than depending on financial organizations driven by profit maximizing motives,” Don said. “This approach truly embodies the cooperative principle of cooperatives supporting one another, rather than relying on traditional banks. It’s a fundamental value at the heart of our mission.”  

Securities are offered through Cooperative Securities LLC (“Cooperative Securities”), a registered broker/dealer and member of FINRA, SIPC. Cooperative Securities is a wholly owned subsidiary of National Cooperative Services Corporation (“NCSC”), an affiliate of National Rural Utilities Cooperative Finance Corporation (“CFC”). Only individuals with the necessary securities licenses are permitted to provide transaction advice. Information about Cooperative Securities and its licensed personnel can be found at https://brokercheck.finra.org.

The testimonials were provided by current cooperative members who previously engaged Cooperative Securities. There was no cash or non-cash compensation provided for the testimonials. A conflict of interest may exist because Cooperative Securities may be inclined to provide the client with preferential treatment for future transactions in return for providing a testimonial. Testimonials may not be representative of all clients' experiences and are not a guarantee of future performance.