National Rural Utilities closes on $500 million series G loan facility

By Toni Weeks

San Luis Obispo, Calif., Nov. 21 - National Rural Utilities Cooperative Finance Corp. closed on a $500 million series G committed loan facility with the U.S. Treasury Department's Federal Financing Bank, increasing to $924 million the total funding provided by the bank to the company under the loan facilities.

The facility is guaranteed by the United States acting through the Rural Utilities Service.

Under the facility, the company may borrow at any time before Oct. 15, 2016, with each advance having a maturity of not more than 20 years from the advance date. In connection with any advance, National Rural Utilities is required to deposit collateral satisfactory to the guarantor.

Borrowings, including all fees, bear interest at a spread over comparable maturity Treasury bonds, as follows:

• 52.5 basis points for 1 year or less;

• 57.5 bps for greater than one year to five years; and

• 65 bps for greater than five years.

The filing said that 30 bps of the fees will be used to support the U.S. Department of Agriculture's Rural Economic Development Loan and Grant Program.

Proceeds may be used for electrification, excluding generation, or telephone purposes, eligible for assistance under the Rural Electrification Act of 1936, as amended, or to refinance bonds or notes issued for such purposes.

National Rural is a market lender for electric cooperatives based in Dulles, Va.

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