Arizona Coop Forgoes 100% Equity Financing, Becomes CFC Borrower
Posted on Feb 11, 2014 in Financing, Patronage Capital | Comments Off on Arizona Coop Forgoes 100% Equity Financing, Becomes CFC Borrower
Duncan Valley Electric Cooperative (DVEC), based in Duncan, Arizona, recently borrowed from the National Rural Utilities Cooperative Finance Corporation (CFC) to prepay future National Rural Electric Cooperative Association Retirement Security Plan contributions. The move makes DVEC a 100% CFC borrower and marks a departure from its existing financing strategy. DVEC, which last borrowed from a lender in the 1970s, paid off its final outstanding loan in 2009, becoming fully financed by equity, including interest earned by its CFC Member Capital Securities investment. For more on this transaction as well as DVEC’s previous financing strategy, click here.
