Short-Term Borrowings

6 Months Ended

Nov. 30, 2021


NOTE 6—SHORT-TERM BORROWINGS

Short-term borrowings consist of borrowings with an original contractual maturity of one year or less and do not include the current portion of long-term debt. Our short-term borrowings totaled $4,747 million and accounted for 17% of total debt outstanding as of November 30, 2021, compared with $4,582 million and 17% of total debt outstanding as of May 31, 2021. The following table provides comparative information on our short-term borrowings as of November 30, 2021 and May 31, 2021.

Table 6.1: Short-Term Borrowings Sources



	November 30, 2021			May 31, 2021
(Dollars in thousands)	Amount		% of Total Debt Outstanding	Amount		% of Total Debt Outstanding
Short-term borrowings:
Commercial paper:
Commercial paper dealers, net of discounts	$	1,039,967	4%	$	894,977	3%
Commercial paper members, at par	1,094,767		4	1,124,607		4
Total commercial paper	2,134,734		8	2,019,584		7
Select notes to members	1,553,763		6	1,539,150		6
Daily liquidity fund notes	410,491		1	460,556		2
Medium-term notes sold to members	398,656		1	362,691		1

Securities sold under repurchase agreements	249,291		1	200,115		1
Total short-term borrowings	$	4,746,935	17%	$	4,582,096	17%

We have master repurchase agreements with two counterparties whereby we may sell investment-grade corporate debt securities from our investment portfolio subject to an obligation to repurchase the same or similar securities at an agreed-upon price and date. Transactions under these repurchase agreements are accounted for as collateralized financing agreements and not as a sale. The obligation to repurchase the securities is reported as securities sold under repurchase agreements, which we include as a component of short-term borrowings on our consolidated balance sheets. We disclose the fair value of the debt securities underlying repurchase transactions; however, the pledged debt securities remain in the

investment debt securities portfolio amount reported on our consolidated balance sheets. On November 23, 2021, we borrowed $249 million under two securities repurchase transactions. On December 6, 2021, we repurchased the underlying pledged debt securities, which had a fair value of $265 million as of November 30, 2021. We had borrowings under repurchase agreements of $200 million as of May 31, 2021 and we had pledged debt securities underlying these repurchase transactions with a fair value of $211 million as of May 31, 2021.

Committed Bank Revolving Line of Credit Agreements

The following table presents the amount available for access under our bank revolving line of credit agreements as of November 30, 2021.

Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts


	November 30, 2021
(Dollars in millions)	Total Commitment		Letters of Credit Outstanding		Available Amount		Maturity	Annual Facility Fee (1)
Bank revolving agreements:

3-year agreement	$	1,245	$	—	$	1,245	November 28, 2024	7.5 bps


5-year agreement	1,355		3		1,352		November 28, 2025	10 bps

Total	$	2,600	$	3	$	2,597

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(1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement.

On June 7, 2021, we amended the three-year and five-year committed bank revolving line of credit agreements to extend the maturity dates to November 28, 2024 and November 28, 2025, respectively, and to terminate certain bank commitments totaling $70 million under the three-year agreement and $55 million under the five-year agreement. As a result, the total commitment amount under the three-year facility and the five-year facility is $1,245 million and $1,355 million, respectively, resulting in a combined total commitment amount under the two facilities of $2,600 million. These agreements allow us to request up to $300 million of letters of credit, which, if requested, results in a reduction in the total amount available for our use.

We did not have any outstanding borrowings under our committed bank revolving line of credit agreements as of November 30, 2021; however, we had letters of credit outstanding of $3 million under the five-year committed bank revolving agreement as of this date. We were in compliance with all covenants and conditions under the agreements as of November 30, 2021.