TVA prices $500 million, thirty-year global power bond

KNOXVILLE, Tenn., June 20, 2003 — TVA priced a $500 million, thirty-year global power bond today. The bonds have a coupon rate of 4.70 percent.

“TVA continues to provide high-quality investment opportunities while producing competitively priced power,” said TVA Chairman Glenn McCullough, Jr. “This offering matches TVA’s financing requirements with the needs of our global investors.”

TVA expects the bonds to be rated Aaa by Moody’s Investors Service and AAA by Standard and Poor’s. The bonds mature July 15, 2033 and will pay interest semi-annually on January 15 and July 15.

“TVA has again responded quickly to current market conditions which will help reduce our interest costs,” said Acting TVA Chief Financial Officer John M. Hoskins.

Proceeds from the sale will be used to refinance TVA’s debt. Bear, Stearns & Co. Inc. and Lehman Brothers are the joint lead managers for the sale.

TVA is a wholly owned U.S. Government agency and the nation’s largest public power system. Its power system is self-financed through power revenues and proceeds from the issuance of debt. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.

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