On December 1, 2016, National Rural Utilities Cooperative Finance Corporation (“CFC”) closed on a $375 million Series L committed loan facility from the U.S. Treasury Department’s Federal Financing Bank (“FFB”) guaranteed by the United States of America, acting through the Rural Utilities Service. Under this Series L facility, CFC is able to borrow any time before October 15, 2019, with each advance having a final maturity not longer than 20 years from the advance date. Interest rates, including all fees (30 basis points of which are used to support the United States Department of Agriculture’s Rural Economic Development Loan and Grant Program), will be at a spread over comparable maturity Treasury Bonds as follows:

10 years or less 42.5 basis points

Greater than 10 years 55 basis points

This new commitment increases total funding available to CFC under committed loan facilities from the FFB to $875 million. The proceeds of the guaranteed loans are to be used by CFC to make loans for electrification (excluding generation) or telephone purposes, eligible for assistance under the Rural Electrification Act of 1936, as amended, or to refinance bonds or notes issued for such purposes.

The foregoing description is a summary and is qualified in its entirely by reference to the agreements themselves, which will be filed as exhibits to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2016.

About NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (Private:Hong Kong)