CFC Update

1
CFC Update

• CREA Annual Meeting

March 2, 2009 Denver, CO
2
CFC Mission and Focus

• CFC is committed to providing financing for the
  capital needs of electric cooperatives
• CFC continues to keep funds flowing to rural
  America despite the crisis in U.S. financial
  markets
• CFC is meeting all of its obligations to members
  and other investors

3
CFC Credit Ratings Affirmed

• CFCs A credit ratings were affirmed by the
  three major rating agenciesStandard Poors,
  Moodys Investors Service and Fitch Ratings
• All three agencies said their outlook for CFC is
  Stable
• SP said CFC continues to have solid operating
  fundamentals

4
CFC/Farmer Mac Agreement

• To lower funding costs for member-owners, CFC has
  been diversifying its funding sources
• In February, CFC and Farmer Mac signed note
  purchase agreementCFC will borrow 500 million
• New transaction comes on heels of successful deal
  signed in December, in which CFC sold another
  500 million of notes to Farmer Mac

5
CFC InterNotes Program

• Due to increased retail investor demand for CFC
  notes, in February CFC Board increased size of
  InterNotes program to 1.5 billion
• InterNotes
• offers further investor diversification
• allows CFC to access maturities not otherwise
  attainable and
• lowers CFCs funding costs for members

6
CFC Member Capital Securities

• CFC loans and guarantees increased by 1.5
  billion from Nov. 30, 2007 to Nov. 30, 2008
• Banks are reducing their debt-equity ratio and
  rating agencies are now more conservative
• CFC must focus on boosting equity to ensure it
  has funding capacity members will need to
• support their projected growth levels
• maintain plant and equipment and
• build new generation
• As a co-op, only place CFC can turn for equity
  investment is to member-owners

7
CFC Member Capital Securities

• Key features of MCS include
• Available to all voting members of CFC
• 35-year term
• Investors earn fixed rate of 7.5 percent
• A unique way for electric co-ops to invest in
  CFC, share in CFCs success and plan for their
  own future

8
Upcoming Events

• In partnership with NRECA and NRTC, CFC sponsors
  orientations for new CFOs, new CEOs and new
  cooperative communicators
• Orientations provide new staff
• opportunity to meet executive management of
  national organizations,
• learn what programs and resources are available
  to them and
• network and build lasting relationships with
  peers across the country

9
Upcoming Events

• Orientations held at CFC, NRECA, NRTC
  headquarters
• New CFO Orientation.March 4-6, 2009
• New Communicators Orientation.March 18-20, 2009
• New CEO Orientation.March 31-April 2, 2009

10
CFC Forum 2009

• June 16-18 at Hyatt Regency in Denver, Colo.
• Timely exchange about challenges and
  opportunities confronting energy industry and
  electric co-ops nationwide
• Distinguished faculty of industry experts,
  leaders and prominent thinkers about regulation,
  finance, management and business topics of common
  concern

11
CFC Forum 2009

• Speakers include
• Bob Schiefferaward-winning journalist,
  broadcaster and author
• Patrick Lencionibest-selling author of The Five
  Temptations of a CEO and
• Dr. Patrick Mooreco-founder and former president
  of Greenpeace, now a strong advocate of nuclear
  power

12
Sponsorship for Conferences and Programs

• NRECA Conferences and Regional Meetings 165,000
• Annual Meeting including CFC Hospitality Room
  500,000
•  

13
Sponsorship for Conferences and Programs

• NRECA International Program
• 100,000
• Touchstone Energy
• 35,000
•  

14
Sponsorship for Conferences and Programs

• Co-Sponsor of Cooperative.com
• 360,000
•  

15
Sponsorship for Conferences and Programs

• CFC NCSC Co-Sponsor Financial Forum
• 400,000 each
•  

16
Sponsorship for Conferences and Programs

• Cooperative Education Grants paid to the
  Statewides
• 608,000
•  

17
CFC Update

• Thank you