Interest Rates

Lending Rate Memorandum — October 13, 2017

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.

State Water Implementation Fund for Texas (SWIFT)

Estimated rates for 2017 funding cycle of SWIFT/SWIRFT are available for both tax-exempt and taxable funding.

General Obligation Loan Programs

Type of Funds Terms ESTIMATED RATE VARIANCE
Market Rate (1) TWDB Rate (2)
Development Fund (Tax Exempt) 20 3.46% 3.20% 0.26%
Development Fund (Tax Exempt) 30 3.94% 3.83% 0.11%
Development Fund (Taxable) 20 4.20% 3.81% 0.39%
EDAP (Tax Exempt) 20 3.46% 2.73% 0.73%
Agricultural Loans (Taxable) 7 3.16% 1.42% 1.74%
Rural Water Assistance Fund (Taxable)(3) 40 N/A 4.42% N/A

State Revolving Funds

Type of Funds (5) Terms ESTIMATED RATE VARIANCE (6)
Market Rate TWDB Rate (4)
Clean Water SRF Non-Equivalency (AA) 20 2.59% 1.29% 1.30%
Clean Water SRF Non-Equivalency (BAA) 20 3.27% 2.97% 1.30%
Clean Water SRF Equivalency (AA) 20 2.59% 0.94% 1.65%
Clean Water SRF Equivalency (BAA) 20 3.27% 1.62% 1.65%
Drinking Water SRF (AA) 20 2.59% 1.24% 1.35%
Drinking Water SRF (BAA) 20 3.27% 1.92% 1.35%
Clean Water SRF Non-Equivalency (AA) 30 2.77% 1.47% 1.30%
Clean Water SRF Non-Equivalency (BAA) 30 3.41% 2.11% 1.30%
Clean Water SRF Equivalency (AA) 30 2.77% 1.12% 1.65%
Clean Water SRF Equivalency (BAA) 30 3.41% 1.76% 1.65%
Drinking Water SRF (AA) 30 2.77% 1.42% 1.35%
Drinking Water SRF (BAA) 30 3.41% 2.06% 1.35%
Table Legend
  1. Market GO rates are calculated from sample level debt service schedules using the BAA-rated MMD tax-exempt and taxable scales, as appropriate. Market data not available for 40 year maturities.
  2. TWDB GO rates are calculated from sample level debt service schedules using TWDB-adopted rate scales.
  3. Based on Development Fund taxable rate; will vary if Rural Water Assistance AMT funds are available
  4. Borrower's rates for Clean Water and Drinking Water SRF loans will depend upon the entity's corresponding rating.
  5. Loan origination fee (on funds other than principal forgiveness) – For loans committed under the SFY 2018 Intended Use Plans (IUPs), the Clean Water SRF program includes a loan origination fee of 1.75% of principal and the Drinking Water SRF program includes a loan origination fee of 2.15% of principal. For projects committed under the SFY 2017 and prior IUPs, the CWSRF program includes a loan origination fee of 1.85% of the principal and the DWSRF program includes a loan origination fee of 2.25% of the principal. For multi-year commitments, the portion of the total commitment associated with SFY 2018 will receive the new loan origination charges contained in the SFY 2018 IUP.
  6. Represents the interest rate subsidies available for loans committed under the SFY 2018 IUP. For loans committed under the SFY 2017 IUP and prior IUPs, the CWSRF subsidies are 1.55% for Equivalency projects and 1.20% for Non-Equivalency projects. For DWSRF loans committed under the SFY 2017 IUP and prior IUPs, the subsidy is 1.25%. For multi-year commitments, the portion of the total commitment associated with SFY 2018 will receive the new interest rate subsidies contained in the SFY 2018 IUP. A limited amount of CWSRF Emergency Relief and DWSRF Urgent Need funds may be available under the SFY 2018 IUP with an additional 100 basis-point interest reduction.

Rates are for illustrative purposes only.

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