A bond bank is a state level entity which lends money to local governments within the state,
with the goal of providing funds for their infrastructure needs and access to the capital markets at
competitive interest rates.
Under the Idaho Bond Bank program "IBBA", a municipality obtains a loan from the Bond Bank
secured by either the municipality's bond or a loan agreement with the Bond Bank. The Bond Bank pools
several loans to municipalities into one bond issue. The municipalities then repay the loan, and those
repayments are used to repay the revenue bonds. The Bond Bank can obtain better credit ratings, more
attractive interest rates, and lower underwriting costs than municipalities could achieve individually.
The Bond Bank is able to pledge certain state funds as additional security for its bonds, further reducing
The Idaho Bond Bank Authority can open doors to municipalities that were previously barred from the capital
markets due to the high costs of financing or challenging credit situations. The current underlying rating
from Moody’s Rating Agency is Aa1.
- IBBA 2012D Bond Issue
- Idaho Statutes
- IBBA Forms
- IBBA Policies
- IBBA Bond Issuance Schedule
The IBBA has adopted a quarterly issuance schedule. Given specific deadlines, we believe this will help borrowers in the planning process. The issuance schedule is as follows:
|End of January
|End of April
|End of July
|End of October
Board meetings to approve applications will tentatively be held as follows:
- Third Monday of December, March, June and September
Board meetings to approve resolutions will tentatively be held as follows:
- Second Monday of January, April, July and October
- Idaho Bond Bank Statements
- Informational Material from BNY Mellon
- IBBA FAQs
Who is eligible to participate?
- Participation is open to all state agencies and to all political subdivisions including: Cities, Towns,
Counties, Public Retirement Systems, Regional School Districts, Local Public Agencies, Public Health
Districts, Irrigation and Soil Conservation Districts and Water and Sewer Districts.
What is the cost to participate?
- The amount of the charge to municipal borrowers will be determined by the size of the loan and the total
number of borrowers, but is expected in all cases to be materially less than a municipality would incur
for a similar financing on its own.
What type of borrowing needs will qualify?
- Municipalities may apply to the Idaho Bond Bank for any loan that they are legally authorized to undertake by Idaho Law.
What is the application process?
- Complete the application listed under “IBBA Forms” on this page.
- The IBBA staff and advisors will review the application and other materials provided by the applicants.
- Applications will be presented to the board (based on meeting calendar) for approval.
- After approved, IBBA staff will work with participant or their representative to issue the bonds based on quarterly issuance schedule.
- Approved applicants can expect to receive financing from the IBBA based on quarterly issuance schedule.
Submit Idaho Bond Bank Authority Comments or Questions