Interest Rates
Lending Rate Memorandum - May 10, 2013
Listed below are the Current Average Lending Rates (ILR) used by the Texas Water Development Board, as of the above date and assuming a level debt service.
Actual rates will vary depending on length, time of closing and structure. Rates are for illustrative purposes only. Contact TWDB staff at (512) 463-6690 for lending rate scale or other inquiries.
The ILR listed below are subject to change and availability of funds. These rates are listed for comparative and marketing purposes only.
General Obligation Loan Programs
| Type of Bonds (1) | Maturities | Average Rate | Variance | |
|---|---|---|---|---|
| Market Rate (2) | TWDB Rate | |||
| Development Fund (Tax Exempt) | 22 | 3.58% | 4.25% | -0.67% |
| Development Fund (Tax Exempt) | 30 | 3.85% | 4.55% | -0.70% |
| Development Fund (Taxable) | 22 | 5.47% | 5.50% | -0.03% |
| EDAP/Tax Exempt: | 22 | 3.58% | 2.88% | 0.70% |
| State Participation* | 35 | 3.99% | 4.52% | -0.53% |
| Agricultural Loans (Taxable) | 7 | 3.30% | 0.11% | 3.19% |
| Rural Water Assistance Fund (AMT) | 40 | N/A | 3.92% | N/A |
| Rural Water Assistance Fund (Taxable) | 40 | N/A | 5.50% | N/A |
General Obligation Loan Programs With Subsidy
Water Infrastructure Fund (Tax Exempt)
| Water Infrastructure Fund (Tax Exempt) | Maturities | Market Rate (2) | Subsidy |
|---|---|---|---|
| 20 | 3.39% | 1.00% |
State Revolving Funds
| Type of State Revolving Funds (1) | Maturities | Average Rate | Variance | |
|---|---|---|---|---|
| Market Rate (2) | TWDB Rate | |||
| Clean Water SRF (AA rated)** | 20 | 2.32% | 1.37% | 0.95% |
| Clean Water SRF (Non-Rated)** | 20 | 3.39% | 2.44% | 0.95% |
| Drinking Water SRF (AA rated)*** | 20 | 2.32% | 1.07% | 1.25% |
| Drinking Water SRF (Non-Rated)*** | 20 | 3.39% | 2.14% | 1.25% |
Table Legend
(1) Municipal bond insurance is currently unavailable for Board Programs.
(2) The GO Market ILR are based on the Thompson Municipal Market Data (MMD) BAA scale assuming most entities are non-rated.
(3) Borrower's rates for Clean Water and Drinking Water SRF loans will depend upon the security, to be pledged, and the entity's corresponding rating. Actual rates are based upon market rates minus a subsidy set 45 days before closing.
As required by the Board's rules lending rates for Clean Water and Drinking Water SRF loans are set from the daily MMD Scale. The MMD Scale has been used to provide the illustrative rates.
* Includes administrative cost recovery fee of .77%
** Includes loan origination charge of 1.85%
*** Includes loan origination charge of 2.25%
Rates are for illustrative purposes only.