FOR IMMEDIATE RELEASE
March 05, 2020

Contact: Communications Office
573-751-1010
communications@dnr.mo.gov

Department saves $6.1 million by refinancing state revolving funds

Contact: Communications Office, 573-751-1010 communications@dnr.mo.gov

FOR IMMEDIATE RELEASE

Department saves $6.1 million by refinancing state revolving funds

JEFFERSON CITY, MO, MAR. 5, 2020 – The Environmental Improvement and Energy Resources Authority (EIERA) and Missouri Department of Natural Resources have refinanced both the Clean Water State Revolving Fund and Drinking Water State Revolving Fund bonds, with a total principal value of $74.1 million. The transactions are expected to generate over $6.1 million in savings for state revolving fund programs.

The savings from this transaction will allow the department to provide even more low-interest loans to Missouri communities to repair or replace aging drinking water and wastewater systems. The EIERA bonds have been rated AAA and Aaa by Fitch and Moodys, respectively.

“Through proactive portfolio management, the EIERA monitors interest rates to identify opportunities to lower our cost of borrowing,” said Joe Boland, director of the authority. “By refinancing existing debt at lower interest rates, we can provide savings to state revolving fund participants and maximize the amount of capital available for infrastructure financing.”

The EIERA and the department cooperatively implement the state revolving fund programs, which have provided $3.4 billion in funding since 1989. Each community that borrows from the fund benefits from the below-market interest rate and from expert guidance provided by a department project manager throughout the project. The average loan interest rate over the past year was around 1 percent.

“Ensuring that Missourians have access to and can afford clean, safe water is core to the department’s mission and is important to every one of us,” said Carol Comer, director of the Department of Natural Resources. “This refinancing will help Missouri communities save millions of dollars, which can be used to create additional economic opportunity so that Missouri remains a great place to live and work.”

The department’s Financial Assistance Center is committed to working with communities to assist with water and wastewater infrastructure improvement projects. Community leaders seeking more information on how to apply for a low-interest infrastructure loan can contact the department at 573-751-1192 or fac@dnr.mo.gov.

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