Interest Rate | Texas Water Development Board

Interest Rates

Lending Rate Memorandum — November 29, 2019

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.

The ILR listed below are subject to change and availability of funds. These rates are listed for comparative and marketing purposes only.

For assistance, please look up contact information for your Regional Team.

State Water Implementation Fund for Texas (SWIFT)

Adopted rates made available for the Fall 2019 funding cycle of SWIFT/SWIRFT are shown below for both taxexempt 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 2.88% 3.37% -0.49%
Development Fund (Tax Exempt) 30 3.44% 3.91% -0.47%
Development Fund (Taxable) 20 3.68% 3.81% -0.13%
EDAP (Tax Exempt) 20 2.88% N/A N/A
Agricultural Loans (Taxable) 7 2.95% 1.60% 1.35%
Rural Water Assistance Fund (Taxable)(3) 40 N/A 4.42% N/A

State Revolving Funds - For Projects in the SFY 2020 Intended Use Plans

Type of Funds (5) Terms ESTIMATED RATE VARIANCE (6)
Market Rate (1) TWDB Rate (4)
Clean Water SRF Non-Equivalency (AA) 20 1.94% 0.64% 1.30%
Clean Water SRF Non-Equivalency (BAA) 20 2.39% 1.09% 1.30%
Clean Water SRF Equivalency (AA) 20 1.94% 0.29% 1.65%
Clean Water SRF Equivalency (BAA) 20 2.39% 0.74% 1.65%
Clean Water SRF Non-Equivalency (AA) 30 2.08% 0.78% 1.30%
Clean Water SRF Non-Equivalency (BAA) 30 2.53% 1.23% 1.30%
Clean Water SRF Equivalency (AA) 30 2.08% 0.43% 1.65%
Clean Water SRF Equivalency (BAA) 30 2.53% 0.88% 1.65%
Drinking Water SRF Non-Equivalency (AA) 20 1.94% 0.69% 1.25%
Drinking Water SRF Non-Equivalency (BAA) 20 2.39% 1.14% 1.25%
Drinking Water Equivalency SRF (AA) 20 1.94% 0.39% 1.55%
Drinking Water Equivalency SRF (BAA) 20 2.39% 0.84% 1.55%
Drinking Water SRF Non-Equivalency (AA) 30 2.08% 0.83% 1.25%
Drinking Water SRF Non-Equivalency (BAA) 30 2.53% 1.28% 1.25%
Drinking Water Equivalency SRF (AA) 30 2.08% 0.53% 1.55%
Drinking Water Equivalency SRF (BAA) 30 2.53% 0.98% 1.55%
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 is not available for 40-year maturities. Market rates applicable to the State Revolving Funds utilize the 16th and 20th year MMD rates for the corresponding rating to approximate 20 and 30-year terms, respectively.
  2. TWDB GO rates are calculated from sample level debt service schedules using TWDB-adopted rate scales.
  3. Based on Development Fund taxable rate.
  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 2020 Intended Use Plan (IUP), 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 2.00% of principal. For projects committed under the SFY 2019 IUP, the CWSRF program includes a loan origination fee of 1.75% of the principal and the DWSRF program includes a loan origination fee of 2.15% of the principal. For multi-year commitments, the portion of the total commitment associated with SFY 2020 will receive the loan origination charges contained in the SFY 2020 IUP.
  6. Represents the interest rate subsidies available for loans committed under the SFY 2020 IUP. For loans committed under the SFY 2019 IUP, the DWSRF subsidy is 1.35%. For multi-year commitments, the portion of the total commitment associated with SFY 2020 will receive the interest rate subsidies contained in the SFY 2020 IUP. A limited amount of CWSRF Emergency Relief, DWSRF Urgent Need, and Disadvantaged Community-Small/Rural funds may be available under the SFY 2020 IUP with an interest rate of zero percent.

Rates are for illustrative purposes only.

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