Interest Rates

Lending Rate Memorandum - May 22, 2015

Listed below are the Current Average Lending Rates (ALR) 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 ALR 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 (3)
Development Fund (Tax Exempt) 22 3.84% 3.18% 0.66%
Development Fund (Tax Exempt) 30 4.10% N/A N/A
Development Fund (Taxable) 25 4.94% 3.82% 1.12%
EDAP (Tax Exempt) 22 3.84% 2.88% 0.96%
Agricultural Loans (Taxable) 7 3.19% 0.24% 2.95%
Rural Water Assistance Fund (Taxable) 40 N/A 4.15% N/A

State Revolving Funds

Type of State Revolving Funds (1) Maturities Average Rate Variance
Market Rate (2) TWDB Rate (4)
Clean Water SRF Non-Equivalency (AA)* 20 2.91% 1.71% 1.20%
Clean Water SRF Non-Equivalency (BAA)* 20 3.67% 2.47% 1.20%
Clean Water SRF Equivalency (AA)* 20 2.91% 1.36% 1.55%
Clean Water SRF Equivalency (BAA)* 20 3.67% 2.12% 1.55%
Drinking Water SRF (AA)** 20 2.91% 1.66% 1.25%
Drinking Water SRF (BAA)** 20 3.67% 2.42% 1.25%

State Water Implementation Fund for Texas (SWIFT)

Estimated interest rates for the first round of SWIFT/SWIFT funding is available

Table Legend
  1. Municipal bond insurance is currently unavailable for TWDB Programs.
  2. Market rates are based upon MMD Scale.
  3. GO rates are based upon TWDB bond sales.
  4. Borrower's rates for Clean Water and Drinking Water SRF loans will depend upon the entity's corresponding rating. Actual rates are based upon market rates minus a subsidy set 45 days before closing.

*  Includes loan origination charge of 1.85%

** Includes loan origination charge of 2.25%

Rates are for illustrative purposes only.

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