With several significant regional transmission and other construction projects on the horizon, Great River Energy recently sought and secured necessary funding from the capital markets.
The cooperative launched and priced a private placement note issuance that attracted strong investor demand, and ultimately secured $300 million at an interest rate of 5.80%. Of the 17 institutional investors participating, two were new to the Great River Energy name and one large investor returned after having not participated in any of the last several financings. The cooperative has three investment-grade credit ratings, meaning it is considered relatively low risk to those looking to invest in it.
“The response from investors during this bond issuance process is a reflection of our positive reputation, our long-term contracts with our member-owners as well as our strong market position,” said Great River Energy Treasury Services Director Tim Faulkner.
The favorable financing secured this year will keep rates competitive for members as the cooperative transitions into a period of increased capital investment.
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