National Rural Utilities, Va., buys $57 million of tax-exempt bonds

By Cristal Cody

Tupelo, Miss., Oct. 14 - The National Rural Utilities Cooperative Finance Corp. in Virginia purchased $57 million of tax-exempt bonds in September and October due to its obligation as the liquidity provider, according to a quarterly earnings report filed with the Securities and Exchange Commission.

The company now is required to hold the bonds until the securities are placed with third-party investors.

Until then, National Rural receives a default interest rate on a majority of the bonds that is higher than the rate investors usually receive on similar tax-exempt bonds.

The company also plans to redeem $8 million of the bonds on Wednesday because of a mandatory sinking fund payment.

National Rural makes loans to rural utility system members to acquire, construct and operate electric distribution, generation and transmission facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.