Idaho State Treasurer's Office
Debt Management
Idaho Bond Bank Authority

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 interest costs.

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.