JEFFERSON CITY, MO, DEC. 3, 2020 - The Missouri Department of Natural Resources and the Environmental Improvement and Energy Resources Authority (EIERA) together are refinancing Clean Water State Revolving Fund and Drinking Water State Revolving Fund bonds. The bonds have a total principal value of more than $100.7 million and the transactions will generate more than $5.1 million in savings for the two funding programs.
"Through proactive portfolio management, the EIERA monitors interest rate environments to identify opportunities to lower our cost of borrowing," said Joe Boland, director of the EIERA. "By refinancing existing debt at lower interest rates, we can maximize the amount of capital available for infrastructure financing. The EIERA bonds have been rated AAA and Aaa by Fitch and Moody’s credit rating agencies, respectively."
The EIERA and the department work cooperatively to implement the State Revolving Fund programs, which provide low-interest loans to Missouri communities to repair or replace aging drinking water and wastewater systems. Since their creation in 1989, the programs have provided $3.5 billion in funding. Communities borrowing from one of the funds benefit from the below-market interest rate, as well as from expert guidance a department project manager provides throughout each project. The average loan interest rate over the last year was below 0.86 percent.
"Ensuring that Missourians have access to 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. "The State Revolving Funds help Missouri communities of all sizes save millions of dollars that can be used to create additional economic opportunities."
Community leaders seeking more information on how to apply for a low-interest infrastructure loan can contact the Missouri Department of Natural Resources at (573) 751-1192 or fac@dnr.mo.gov.