Newsroom & Financials

CoBank Announces Redemption of $500 million in Subordinated Notes

Posted 6/19/2017

CoBank today announced that is has redeemed $500 million of subordinated notes originally issued in 2007 with a 10-year call date.

“Recent changes to capital regulations provide less favorable capital treatment for subordinated debt instruments. Coupled with the bank’s strong capital ratios and capacity, and as part of our long-term capital strategy, it is prudent for the bank to redeem these notes now,” said CoBank Chief Financial Officer David P. Burlage. “We will continue to evaluate a range of capital market strategies in order to ensure our capacity to serve customers and optimize the cost and effectiveness of our capital.”

On April 17, 2017, the bank announced the intention to redeem the notes after receiving approval from its regulator, the Farm Credit Administration, on April 13, 2017. The notes have been redeemed at par, together with accrued and unpaid interest to, but excluding, the redemption date (less any applicable tax withholding as require by law). The redemption and paying agent for the redemption is The Bank of New York Mellon Trust Company, N.A. Read more...

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