Interest Rates

Lending Rate Memorandum — July 31, 2015

Listed below are the Illustrative 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 Funds Terms ESTIMATED RATE VARIANCE
Market Rate (1) TWDB Rate (2)
Development Fund (Tax Exempt) 20 3.70% 3.18% 0.52%
Development Fund (Tax Exempt) 30 3.84% N/A N/A
Development Fund (Taxable) 20 5.16% 3.82% 1.34%
EDAP (Tax Exempt) 20 3.70% 3.02% 0.68%
Agricultural Loans (Taxable) 7 3.30% 0.33% 2.97%
Rural Water Assistance Fund (Taxable)(5) 40 5.31% 4.15% 1.16%

State Revolving Funds

Type of Funds (4) Terms ESTIMATED RATE VARIANCE
Market Rate TWDB Rate (3)
Clean Water SRF Non-Equivalency (AA) 20 2.94% 1.74% 1.20%
Clean Water SRF Non-Equivalency (BAA) 20 3.70% 2.50% 1.20%
Clean Water SRF Equivalency (AA) 20 3.94% 1.39% 1.55%
Clean Water SRF Equivalency (BAA) 20 3.70% 2.15% 1.55%
Drinking Water SRF (AA) 20 2.94% 1.69% 1.25%
Drinking Water SRF (BAA) 20 3.70% 2.45% 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. Market GO rates are based upon BAA-rated MMD Scale.
  2. TWDB GO rates are based upon TWDB-adopted rate scales.
  3. Borrower's rates for Clean Water and Drinking Water SRF loans will depend upon the entity's corresponding rating.
  4. The Clean Water SRF program includes a loan origination charge of 1.85% of the principal, and the Drinking Water SRF program includes a loan origination charge of 2.25% of the principal.
  5. Based on Development Fund taxable rate; will vary if Rural Water Assistance AMT funds are available

Rates are for illustrative purposes only.

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