Public bond issuance generates investor interest in Basin Electric

October 6, 2025, marked an important financial milestone for Basin Electric with the issuance of public bonds. The issuance enabled Basin Electric to borrow $700 million, marking a key step in supporting long-term investments that strengthen the cooperative's infrastructure and enable reliable, affordable electricity to members.

"The bonds were issued with a 30-year bullet maturity, meaning Basin Electric will make interest-only payments over 30 years, then the full principal amount will be due on October 15, 2055," Sarah Scherm, Basin Electric's vice president and treasurer, said.

This marks only the second time Basin Electric has issued public bonds, the first being a $500 million issuance in 2017. The 2025 issuance differs in that it includes U.S. Securities and Exchange Commission registration rights, requiring Basin Electric to follow the similar financial reporting rules as publicly traded companies. This voluntary move enhances transparency, strengthens investor confidence, and broadens Basin Electric's access to capital markets.

"The week before announcing the launch of the bond issuance, we held three separate telephonic meetings where we engaged with a total of about 60 investors," Scherm said. "These investors all had differing levels of knowledge about Basin Electric, so this was an opportunity to tell the Basin story and help investors make an informed decision on whether to purchase our bonds."

Basin Electric worked closely with several financial institutions, including Wells Fargo, PNC, and US Bank, throughout the process, as well as two external legal firms: Orrick, representing Basin Electric in the transaction, and Eversheds Sutherland, representing the bond purchasers.

"The market was very receptive to this bond issuance," Scherm said. "We were significantly oversubscribed and were able to issue at a lower interest rate than what was included in the 2025 budget and the 2026 financial forecast. This will set us up well for future issuances as investors will look to this transaction when determining whether to invest in future ones."