For Release: March 22, 2011
Contact: Ling Wang, Brad Captain
HERNDON, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU, NRC) has closed on a $1.1 billion three-year unsecured revolving credit facility with a syndicate of 22 banks. It will replace an existing $967.3 million five-year facility put in place in 2006, and will be used to backstop CFC’s commercial paper programs and for general corporate purposes.
“We are very pleased with the ongoing strong support we’re receiving from our core lending group—those we have developed a long-term relationship with increased their commitment to CFC by $300 million,” said Andrew Don, CFC senior vice president and treasurer.
The latest facility was first launched at $900 million but was increased due to an oversubscription on the part of the banks involved. Ten of the participating lenders are Asian retail banks, which committed a total $114 million.
“We met with foreign retail banks to explain our unique business model as a cooperative finance organization and were able to attract eight new retail banks in addition to two that we have done business with in the past,” Don said. “The range of lenders represented in this group operates in all corners of the globe and truly contributes to the diversity of CFC’s funding sources.”
CFC currently has two other credit facilities in place for the same purposes. One is a five-year, $1 billion facility maturing in March 2012; the other is a three-year,
$1.4 billion facility maturing in March 2013. The laddered maturity structure allows CFC to more effectively manage the refinancing risk. CFC is working with 30 banks among the three facilities, with nearly $3.6 billion committed in total.
The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit cooperative that provides capital and industry-leading financial products to the nation’s rural utility systems. With more than $20 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners.