TVA sells bonds at record low rate

TVA sells bonds at record low rate

December 19th, 2012 by Dave Flessner in Local - Breaking News

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The Tennessee Valley Authority announced today it has priced $1 billion of new 30-year global power bonds with an interest rate of 3.5 percent - the lowest rate ever on a TVA 30-year institutional bond.

TVA officials said they tried to take advantage of a window of opportunity during a period of government fiscal negotiations and the holiday season to obtain low-cost financing.

"The favorable interest rate environment and stable market allowed us to achieve the lowest interest rate on any TVA institutional financing of more than 10 years," TVA Treasurer John Hoskins said in a statement.

TVA is a self-funding federal agency, but bond rating agencies give TVA a top rating based upon the implied backing of the federal government.