National Rural maintains liquidity; sees $2.5 billion maturities

By Sahara Marte

New York, Aug. 23 - National Rural Utilities Cooperative Finance Corp. expects to maintain its current liquidity during the upcoming quarters, Andrew Don, senior vice president and treasurer, said during the company's fiscal fourth quarter earnings conference call.

"We have plenty of liquidity at this time," added Don. "But we will continue to monitor the market."

For the next 18 months, the company projected a cash need of $5 billion, about half which is to pay debt maturities. The cash needs for anticipated loan advances are expected to total $2.3 billion.

"We are projecting that loan amortizations and prepayments will eventually offset the amount of projected loan advances," Don said.

For the upcoming fiscal year, debt maturities are "modest," said Don. The largest scheduled payment is $900 million due in the first quarter of fiscal 2014.

For the fourth quarter, the company's new loan volume declined by $411 million. It expects to maintain a stable loan volume over the next 12 months.

"CFC [Cooperative Finance Corp.] has continued to balance secure and unsecure financing while always looking to access attractive funds for our member borrowers," stated Don.

The market lender for electric cooperatives is based in Herndon, Va.

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