CFC Issues Second Sustainability Bond to Support Electric Cooperatives
The National Rural Utilities Cooperative Finance Corporation (CFC) has announced the successful issuance of its second Sustainability Bond. Under CFC’s Sustainability Bond Framework, the company can use the proceeds to finance electric cooperatives’ broadband and renewable projects that can make the most positive social and environmental impact in their communities. The net proceeds from this bond issuance will be allocated exclusively to finance broadband projects that provide access to essential service for underserved and rural populations.
CFC’s $400,000,000 Sustainability Bond has a 10-year term and a 4.15 percent annual coupon.
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“CFC and our member cooperatives are focused on providing essential services to rural Americans, including many underserved communities, which is a core principle of our business model,” CFC Chief Executive Officer Andrew Don said. “We had a very positive experience financing our members’ broadband projects with our first Sustainability Bond issued in 2020. We are pleased to issue a second bond that will support the electric cooperative network and the communities it serves.”
CFC established its Sustainability Bond Framework in September 2020. An independent second-party opinion on the bond’s framework and its alignment with relevant environmental, social and governance (ESG) market standards was written by Sustainalytics, a provider of ESG research and analysis. CFC’s first Sustainability Bond Report was published in August 2021. All three of these documents can be found on CFC’s website.
“These Sustainability Bonds allow us, our investors and our member cooperatives to finance the buildout of rural broadband, a critical infrastructure need for our country,” said CFC Chief Financial Officer Ling Wang.
Source: National Rural Utilities Cooperative Finance Corporation