National Rural Utilities Cooperative gets $750 million loan facility

By Wendy Van Sickle

Columbus, Ohio, Nov. 19 – National Rural Utilities Cooperative Finance Corp. closed on a $750 million series N committed loan facility from the Treasury Department’s Federal Financing Bank on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The loan facility is guaranteed by the United States of America, acting through the Rural Utilities Service.

Under this series N loan facility, the company is able to borrow any time before July 15, 2023, and each advance will have a final maturity not longer than 20 years from the advance date.

Interest rates, including all fees (30 basis points of which are used to support the Department of Agriculture’s Rural Economic Development Loan and Grant Program), will be at a spread over comparable maturity Treasury Bonds as follows: 42.5 bps for 10 years or less and 55 bps for greater than 10 years.

This new commitment increases total funding available to the company under committed loan facilities from the Federal Financing Bank to $1,975,000,000.

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

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