KNOXVILLE, TN (WRCB) --  The Tennessee Valley Authority announced Wednesday that it has priced $1 billion of 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 took advantage of the window during the government fiscal negotiations and holidays to obtain low-cost financing.  

TVA receives no funding from taxpayers, and generates revenues from power sales and power program financings. The proceeds from the sale will be used to reduce other debt, and for general corporate purposes.

The transaction benefited from strong investor demand, with orders from a variety of institutional investors primarily in the United States. Morgan Stanley, Bank of America Merrill Lynch and Barclays Capital were joint book-running managers for the offering.  

The new bonds mature on Dec. 15, 2042, and are not subject to redemption prior to maturity. The interest will be paid semi-annually each Dec.15 and June 15.