CFC Launches New Investment Product to Retail Investors
The National Rural Utilities Cooperative Finance (CFC) has announced the launch of a Retail Subordinated Notes program, enabling the company to issue subordinated deferrable notes to retail investors. According to CFO Ling Wang, this initiative will diversify their investor base and provide more frequent market access. The offerings will be made through an SEC-registered shelf registration statement, with terms detailed in prospectus supplements. Interested investors can access documentation through the SEC's EDGAR system and should contact their brokers for additional information.
Il National Rural Utilities Cooperative Finance (CFC) ha annunciato il lancio di un programma di Note Subordinate al Dettaglio, che permette all'azienda di emettere note subordinate differibili per gli investitori al dettaglio. Secondo il CFO Ling Wang, questa iniziativa diversificherà la loro base di investitori e fornirà un accesso più frequente al mercato. Le offerte saranno effettuate tramite una dichiarazione di registrazione shelf registrata presso l'SEC, con i termini dettagliati nei supplementi del prospetto. Gli investitori interessati possono accedere alla documentazione tramite il sistema EDGAR dell'SEC e dovrebbero contattare i loro broker per ulteriori informazioni.
El National Rural Utilities Cooperative Finance (CFC) ha anunciado el lanzamiento de un programa de Notas Subordinadas al por Menor, que permite a la compañía emitir notas subordinadas diferibles para inversores minoristas. Según el CFO Ling Wang, esta iniciativa diversificará su base de inversores y proporcionará un acceso más frecuente al mercado. Las ofertas se realizarán mediante una declaración de registro de línea registrada ante la SEC, con los términos detallados en los suplementos del prospecto. Los inversores interesados pueden acceder a la documentación a través del sistema EDGAR de la SEC y deben contactar a sus corredores para obtener información adicional.
National Rural Utilities Cooperative Finance (CFC)가 소매 후순위 노트 프로그램의 출범을 발표했습니다. 이를 통해 회사는 소매 투자자에게 후순위 연기 가능한 노트를 발행할 수 있게 됩니다. CFO 링 왕에 따르면, 이 이니셔티브는 투자자 기반을 다양화하고 보다 자주 시장에 접근할 수 있도록 도와줄 것입니다. 제안서는 SEC에 등록된 선반 등록 선언을 통해 이루어지며, 약관은 투자 안내서의 보충 문서에 자세히 설명됩니다. 관심 있는 투자자는 SEC의 EDGAR 시스템을 통해 문서에 접근할 수 있으며, 추가 정보를 원할 경우 중개인에게 문의해야 합니다.
Le National Rural Utilities Cooperative Finance (CFC) a annoncé le lancement d'un programme de Notes Subordonnées au Détail, permettant à l'entreprise d'émettre des notes subordonnées différables pour les investisseurs particuliers. Selon le CFO Ling Wang, cette initiative diversifiera leur base d'investisseurs et fournira un accès plus fréquent au marché. Les offres seront réalisées par le biais d'une déclaration d'enregistrement de type shelf enregistrée auprès de la SEC, avec des termes détaillés dans les suppléments de prospectus. Les investisseurs intéressés peuvent accéder à la documentation via le système EDGAR de la SEC et doivent contacter leurs courtiers pour plus d'informations.
Die National Rural Utilities Cooperative Finance (CFC) hat den Start eines Programms für nachrangige Einzelhandelsanleihen bekannt gegeben, das es dem Unternehmen ermöglicht, nachrangige aufschiebbar Anleihen an Einzelinvestoren auszugeben. Laut CFO Ling Wang wird diese Initiative die Investorenbasis diversifizieren und einen häufigeren Zugang zum Markt bieten. Die Angebote werden über eine bei der SEC registrierte Shelf-Registrierungserklärung abgewickelt, deren Bedingungen in Prospektnachträgen detailliert beschrieben sind. Interessierte Investoren können die Dokumentation über das EDGAR-System der SEC aufrufen und sollten ihre Broker für weitere Informationen kontaktieren.
- Launch of new retail subordinated notes program expands funding sources
- Enhanced financial flexibility for meeting member financing needs
- Increased market access frequency potential
- Diversification of investor base
- Potential increase in debt obligations
- Additional subordinated liability on balance sheet
Insights
The launch of a Retail Subordinated Notes program represents a significant strategic move for CFC to expand its funding sources. Subordinated notes, being lower in priority than other debt obligations, typically offer higher yields to compensate for the additional risk, making them attractive to retail investors seeking better returns. The ability to issue these notes "from time to time" provides CFC with valuable flexibility in capital raising.
This program could potentially lower CFC's overall cost of capital through diversification of funding sources. The retail market access enables smaller, more frequent issuances compared to traditional institutional offerings, allowing better matching of funding needs with capital raising. However, retail investors should note that subordinated notes carry higher risk due to their position in the capital structure and potential for interest payment deferrals.
DULLES, Va., Nov. 04, 2024 (GLOBE NEWSWIRE) -- The National Rural Utilities Cooperative Finance Corporation (CFC) is excited to announce the launch of a Retail Subordinated Notes program, which will allow CFC to issue subordinated deferrable notes from time to time to retail investors.
“Adding retail subordinated notes to our funding mix allows us to diversify our investor base and access the market more frequently,” CFC Senior Vice President and Chief Financial Officer Ling Wang said. “This additional funding source provides CFC with greater financial flexibility, enhancing our ability to meet our members’ financing needs.”
The offerings will be made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) by means of a prospectus and prospectus supplement. A pricing supplement describing the terms of the offering will be filed with each issuance. Prospective investors should read the prospectus supplement and the accompanying prospectus included in the registration statement and other documents CFC has filed with the SEC for more complete information about CFC and the offering of the Subordinated Notes. Copies of the prospectus and the prospectus supplement may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov. Interested investors should contact their broker to obtain additional information.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful before registration or qualification thereof under the securities laws of any such state or jurisdiction.
About CFC
Created and owned by America’s electric cooperative network, the National Rural Utilities Cooperative Finance Corporation (CFC)—a nonprofit finance cooperative with over
| Contacts: | Brad Captain | |
| Corporate Relations Group | ||
| publicrelations@nrucfc.coop | ||
| 800-424-2954 |
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