USA: CoBank issues $200 million in preferred stock

CoBank , a leading national cooperative bank serving agribusinesses and rural utilities throughout the United States, announced recently that it has issued $200 million in Series C non-cumulative subordinated perpetual preferred stock. The preferred stock pays a fixed-rate dividend of 11 percent through June 2013, after which the dividend will float at a rate indexed to three-month LIBOR. Net proceeds will be used to increase regulatory capital as well as for general corporate purposes. CoBank has raised a total of $1.7 billion from institutional investors over the past seven years. The bank issued $300 million of Series A cumulative preferred stock in June 2001. An additional $200 million in Series B cumulative preferred stock was issued in November 2003. The bank has issued $1 billion in subordinated debt, including a $500 million issuance in April this year.