Adjustable Rate Advances

Adjustable rate advances provide a source of liquidity that periodically adjusts to market rates. These advances assist in the management of interest rate and basis risk.

Term

Typical maturities up to 10-Years

Rate

Indices include, but are not limited to, Secured Overnight Financing Rate (SOFR), FHLB Cost of Funds, the U.S. Prime Rate, and the constant maturity Treasure (CMT) rate. Reset periods available depend upon the index selected. Interest on advances using COF index will be calculated on an actual/actual basis.

Interest is Paid

Monthly and/or at Maturity

Principal is Paid

At Maturity

Principal Prepayment Policy

May prepay subject to applicable limitations and prepayment fees described in the adjustable rate advance terms sheet

Application

Call FHLBank Indianapolis by 11:00 am ET for same banking day funding

Transitioning from LIBOR

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.

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Adjustable Rate Advances

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Transitioning from LIBOR