NRC.CL National Rural Utils Coop Fin Corp Subordinated Note

The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU.CL) (NYSE: NRC.CL) has closed on an underwritten public offering of $400 million of 4.75-percent Fixed-to-Floating Rate Subordinated Deferrable Interest Notes, due 2043. The hybrid offering's coupon is a record low for CFC, as well as one of the lowest for a U.S. hybrid in at least 10 years.

"We moved to take advantage of favorable market conditions, and I am extremely pleased with investors' reception of this offering," CFC CEO Sheldon C. Petersen said. "The historic nature of the 4.75-percent coupon speaks to investor confidence in CFC, as well as the strength of the electric cooperative network we serve."

Loan volume grew by $566 million during the first three quarters of CFC's fiscal year 2013 (through Feb. 28, 2013). Loan volume increased an additional $649 million during March 2013, subsequent to the end of CFC's third quarter.

"Strengthening CFC's adjusted equity base is a priority in positioning us to meet member borrowing needs," Petersen added.

CFC intends to use the net proceeds from the offering for general corporate purposes, including the repayment of short-term debt and the redemption of previously issued 6.10-percent and 5.95-percent Subordinated Notes, due 2044 and 2045, respectively.

About CFC The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit finance cooperative created and owned by America's electric cooperative network. With approximately $21 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners. CFC can be found online at www.nrucfc.coop.

Contacts: Brad Captain Corporate Communications Email Contact 800-424-2954 Ling Wang Banking & Investor Relations Email Contact 800-424-2954