The Tennessee Valley Authority priced $1 billion of 50-year bonds last week at its lowest rate ever for such long-term debt. The 50-year global power bonds were priced at 4.625 percent, just one-eighth of 1 percent above comparable 30-year bonds.
TVA doubled the size of what it initially planned to offer because of strong demand for the 50-year bonds by insurance companies, money managers and other investors.
“The low rate achieved on this bond offering will lock in lower expense for TVA and our customers,” TVA Chief Financial Officer John Thomas said, noting the new bonds will refinance existing debt.