Putable advances offer a low-fixed interest rate in exchange for selling FHLBank Indianapolis the option to put the advance. FHLBank Indianapolis retains the ability to put the advance before maturity on any given exercise date.
- Provide members with the opportunity to fund the balance sheet at rates lower than those of a traditional fixed-rate bullet
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Term
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Typical maturities from 2-Years to 10-Years
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Rate
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Remains fixed until put or maturity
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Interest is Paid
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Monthly and/or at Maturity
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Principal is Paid
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At Maturity
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Principal Prepayment Policy
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The member may elect, with at least 2 banking days’ prior written notice to FHLBank Indianapolis, to terminate in whole this transaction. FHLBank Indianapolis shall calculate a reasonable termination amount (prepayment fee) which would leave FHLBank Indianapolis economically indifferent
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Put Option
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FHLBank Indianapolis shall have the option to put the entire advance on the lock-out date or on any exercise date thereafter. Typically lock-out terms range from 3 months to 5 years, with quarterly or one-time options
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Application
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Members must sign and return an Option-Embedded Advance Disclosure Statement prior to locking a rate. Call FHLBank Indianapolis by 10:00 am ET for same banking day funding
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The financial markets are preparing for the expected phase-out of the London Interbank Offered Rate (LIBOR) by the end of 2021.
As part of this transition, the Federal Housing Finance Agency (FHFA) recently issued a supervisory letter to all Federal Home Loan Banks (FHLBanks). The FHFA, which regulates the FHLBanks, has required that by March 31, 2020, the FHLBanks cease entering into new LIBOR referenced instruments with maturities beyond December 31, 2021. This change may impact certain FHLBank Indianapolis products with a LIBOR component.
For more information, please see our LIBOR Transition page.
Contact Us
For more information or questions about our products, call the
FHLBank Indianapolis Advances Desk at 800.442.2568.