Subsequent Event

9 Months Ended

Sep. 30, 2017

Subsequent Event

Subsequent Event

25. Subsequent Event

On October 30, 2017 the Bank issued and sold $1.1 billion in aggregate principal amount of unsecured senior bank notes, with a maturity of three years, due on October 30, 2020. The bank notes consisted of $750 million of 2.20% senior fixed-rate notes and $300 million of senior floating-rate notes at three-month LIBOR plus 25 bps. The Bank entered into an interest rate swap to convert the fixed-rate notes to a floating-rate, which resulted in an effective interest rate of three-month LIBOR plus 24 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date.