New Issue: FHLB prices $3.75 billion 0.875% two-year Global Notes at Treasuries plus 13 bps

By Devika Patel

Knoxville, Tenn., Aug. 25 – The Federal Home Loan Bank System priced $3.75 billion of 0.875% two-year Global Notes on Wednesday at a spread of 13 basis points over Treasuries, according to a news release.

Pricing was at 99.932 to yield 0.908%.

BofA Merrill Lynch, Nomura Securities International, Inc. and Wells Fargo Securities LLC are the lead managers.

Distribution was primarily to investors in the United States (70%) and Europe (9%), and was led by investment advisers/fund managers (53%) followed by central banks (28%) and corporations (4%).

The government-sponsored bank system for financial institutions is based in Washington, D.C.

Issuer:	Federal Home Loan Banks
Amount:	$3.75 billion
Description:	Global Notes
Maturity:	Oct. 1, 2018
Lead managers:	BofA Merrill Lynch, Nomura Securities International, Inc. and Wells Fargo Securities LLC
Co-managers:	Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., FTN Financial Securities Corp., HSBC Securities (USA) Inc.,	Morgan Stanley & Co. LLC,	TD Securities (USA) LLC
Coupon:	0.875%
Price:	99.932
Yield:	0.908%
Spread:	Treasuries plus 13 bps
Pricing date:	Aug. 24
Settlement date:	Aug. 25

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