The NCUA has reported it has completed the initial offering of NCUA Guaranteed Notes, investments backed by separate pools of mortgage backed securities. The agency has unconditionally guaranteed timely payment of principal and interest.

The sale is part of the agency corporate resolution plan.

The notes sold were Senior Series 1-A and Senior Series II-A. The Series 1-A offering was for $3.28 billion in notes backed by "senior floating rate securities" the agency said. The notes will pay a return of the London Interbank Offered Rate plus .45% per year, subject to cap of 7.00% per year.

The Series II-A offering was for $566.5 million in notes backed by "fixed pass through securities" and will carry a return of 1.84% per year, the agency said.

NCUA said the offer was oversubscribed and that a mixture of 35 investors participated. Those included credit unions, banks, broker-dealers, insurance companies, money management firms, pension funds and government agencies. Credit unions took about 10% of the offering, NCUA reported.