Interest Rates

Lending Rate Memorandum - October 17, 2014

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 Bonds1 Maturities Average Rate Variance
Market Rate TWDB Rate
Development Fund (Tax Exempt) 22 3.24% 3.18% 0.06%
Development Fund (Tax Exempt) 30 3.50% N/A N/A
Development Fund (Taxable) 22 5.04% 3.82% 1.22%
EDAP (Tax Exempt) 22 3.24% 2.88% 0.36%
Agricultural Loans (Taxable) 7 3.46% 0.10% 3.36%
Rural Water Assistance Fund (AMT) 40 N/A 3.92% N/A
Rural Water Assistance Fund (Taxable) 40 N/A 3.05% N/A
State Participation* (Tax Exempt) No Funds Available

General Obligation Loan Programs With Subsidy

Water Infrastructure Fund
(Tax Exempt)

Water Infrastructure Fund (Tax Exempt) Maturities Market Rate Subsidy
No Funds Available

State Revolving Funds

Type of State Revolving Funds1 Maturities Average Rate Variance
Market Rate TWDB Rate2
Clean Water SRF Non-Equivalency (AA)** 20 2.28% 1.08% 1.20%
Clean Water SRF Non-Equivalency (BAA)** 20 3.14% 1.94% 1.20%
Clean Water SRF Equivalency (AA)** 20 2.28% 0.73% 1.55%
Clean Water SRF Equivalency (BAA)** 20 3.14% 1.59% 1.55%
Drinking Water SRF (AA)*** 20 2.28% 1.03% 1.25%
Drinking Water SRF (BAA)*** 20 3.14% 1.89% 1.25%

Table Legend

  1. Municipal bond insurance is currently unavailable for Board Programs.
  2. 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.