CoBank issues $500 million of preferred stock
DENVER (May 28, 2026) — CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced today that it has issued $500 million of preferred stock in a transaction exempt from registration under the Securities Act of 1933, as amended.
The new Fixed-Rate Reset Series N Non-Cumulative Perpetual Preferred Stock (“Series N Preferred Stock”) has a fixed dividend rate of 6.75 percent until July 1, 2031, after which the dividend rate will reset every five years to a rate equal to the five-year U.S. Treasury rate plus a spread of 2.62 percent. J.P. Morgan and Morgan Stanley served as joint bookrunners on the Series N Preferred Stock transaction. RBC Capital Markets and Truist Securities served as co-managers. Use of proceeds from the issuance may include financing any potential future redemptions of CoBank’s outstanding series of preferred stock.
“We’re pleased with market conditions and very strong demand from investors which drove attractive terms and deal size. This transaction aligns with our capital strategy, which is designed to maximize the financial strength and flexibility of the bank and meet the present and future needs of our customers, while minimizing the overall cost of capital," said Sean Burke, CoBank's chief financial officer. "Third-party capital supplements our member stock and unallocated retained earnings, and it provides the bank with enhanced capacity to serve the borrowing needs of our customers."
With the Series N Preferred Stock issuance, CoBank’s total outstanding preferred stock is $2.4 billion.
Forward-Looking Statements
This news release contains projections and statements that are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control.
These projections and statements may address, among other things, business strategy, competitive strengths, goals, market and industry developments, and the growth of our businesses and operations. It is possible that our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these projections and statements. Factors that could cause our actual results to differ, possibly materially, from those in the specific projections and statements include, but are not limited to: the military conflicts in Ukraine and Iran and the resulting impact on oil, gas and fertilizer prices, global trade for commodities, transportation availability and costs, and economic conditions; changing domestic and global economic conditions; changes in the economic environment that negatively impact the agricultural, power, communications, water and leasing industries; credit performance of the loan portfolio; performance of the underlying collateral of our loans; changes in estimates underlying the allowance for credit losses; government trade policies in the U.S. and other countries, including tariffs and other restrictions that impact markets for agricultural and other products; actions taken by the U.S. government to manage U.S. immigration and its impact on labor availability for the U.S. farming community; inflation, recession, the level of interest rates and relationships between various interest rate indices and actions taken by the Federal Reserve to manage the monetary policy of the U.S.; changes to tax laws and regulations, including those resulting from congressional elections; a decrease in the credit outlook or ratings of U.S. government debt, agency debt, the securities of Government Sponsored Enterprises, including Systemwide Debt Securities, and our securities; geopolitical uncertainties, conflicts and government policy developments in the U.S. and throughout the world that may impact the industries we lend to, or, economic, fiscal or monetary conditions; changes in the U.S. government’s support of the Farm Credit System, the agricultural industry, agricultural exports, rural infrastructure and rural economies and any future enactment of a new Farm Bill or other agriculture and nutrition policies outside of the Farm Bill; changing perception of the environmental, social and governance trend in the financial services industry globally; currency fluctuations that impact the value of the U.S. dollar in global markets; adverse food safety and weather events, disease, and other unfavorable conditions that periodically occur and impact agricultural productivity and income; catastrophic events such as wildfires, floods and other natural disasters, political unrest or other similar occurrences, which may have a direct or indirect impact on certain of our borrowers; changes in levels of global crop production, exports, imports, usage and inventories; changes in consumer demand for agricultural and other products; changes in consumer and industrial demand for electricity; changes in energy generation supply and production mix; loan portfolio growth and seasonal factors; volatility in energy prices including oil, natural gas and other fuel; legislative or regulatory actions that affect our relationships with our employees; actions taken by the U.S. Congress relative to other government-sponsored enterprises; actions taken by the U.S. Congress to fund infrastructure improvements; regulatory actions and interpretations adversely impacting our business; our ability to attract and retain high quality employees; cybersecurity, artificial intelligence, and fraud risks, including a failure or breach of our or a critical vendor’s operational or security systems or infrastructure, that could adversely affect our business, customers, financial performance and reputation; failures of critical vendors and other third-party providers could disrupt our ability to conduct and manage our business; disruptive technologies, such as artificial intelligence and other technologies, impacting the banking and financial services industries or implemented by our competitors which negatively impact our ability to compete in the marketplace; technology transformation, upgrade and enhancement of our core banking platforms and other systems; changes in investor confidence due to disruptions or other changes in the financial services and commercial banking sectors; widespread health emergencies, such as pandemics and epidemics, and related disruptions to businesses and the economy; changes in assumptions underlying the valuations of financial instruments; failure of our investment portfolio to perform as expected, deterioration in the credit quality of such investments or impact of higher interest rates on the value of our investment securities and other interest-bearing assets; legal proceedings, judgments, settlements and related matters; environmental-related conditions or laws impacting our lending activities; nonperformance by counterparties under our derivative and vendor contracts; executing on our strategy of developing further collaboration with other System institutions; success of business model solutions focused on strengthening our ability to fulfill the System’s collective mission; and our ability to continue to partner with various System and other entities in light of ongoing consolidation within the System and the industries we serve could materially affect our business, financial condition, and results of operations. Consequently, all of the projections, statements and other information about future events are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by us or the projections will be realized or, even if realized, will have the expected consequences to or effects on us or our business, financial condition or results of operations.
The list of factors is not all-inclusive because it is not possible to predict all factors. Additional factors that should be considered are located in CoBank's 2025 Annual Report as well as CoBank’s first quarter 2026 Quarterly Report. CoBank undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About CoBank
CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving almost 80,000 farmers, ranchers and other rural borrowers in 23 states around the country. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.