TVA borrows $1 billion through power bonds

-A A +A

TVA has borrowed $1 billion through new 30-year global power bonds with an interest rate of 3.50 percent — the lowest rate ever on a TVA 30-year institutional bond.

TVA was able 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 ten years,” Senior Vice President and Treasurer John Hoskins said. “The low-cost financing will support TVA’s vision to provide low cost, cleaner energy.”

The proceeds from the bond sale will be used to reduce other debt, and for general corporate purposes.

The transaction benefitted from strong investor demand, with orders from a variety of institutional investors primarily in the United States.