TVA prices $1 billion at lowest interest rate - | Chattanooga News, Weather & Sports

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TVA prices $1 billion worth of bonds at lowest interest rate

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CHATTANOOGA, TN (Times Free Press) -- The Tennessee Valley Authority priced $1 billion of bonds Monday at its lowest interest rate ever on a long-term note.

The 10-year global power bonds were priced Monday at an interest rate average of 1.875 percent. Monday's bond sale was the first ever for long-term TVA bonds priced below 2 percent. TVA will use the proceeds to pay off higher-priced debt and to fund its ongoing construction of Watts Bar Unit 2.

"Achieving a record low interest rate allows us to keep power rates low while we continue to deliver reliable power to our customers, and supports our vision to be a leading provider of lower-cost, cleaner energy by 2020," TVA Chief Financial Officer John Thomas said in a statement today.

Fitch reaffirmed its AAA rating of TVA bonds in advance of the bond sale. Although TVA is an independent, self-funding federal agency, it enjoys the implied backing of the federal treasury.

Read more from our news partners at the Chattanooga Times Free Press.

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