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Alaska Municipal Bond Bank Authority

AMBBA is a public corporation established to aid authorized Alaskan borrowers in financing capital improvement projects such as schools, water and sewer systems, public buildings, harbors, and docks (AS 44.85.005 through 44.85.420) (AK Admin Code ch. 144). AMBBA generates funding by selling bonds on the national market, and using the proceeds to purchase bonds from authorized borrowers within the State. Administratively supported by Department of Revenue staff, a board of five directors determines the Bond Bank’s actions such as setting interest rates and approving loans.

The Bond Bank has an excellent loan record and has received an 'A1' credit rating from Moody's Investors Service, Inc., and an 'A+' rating from S&P Global Ratings. With these ratings, it is able to borrow money at favorable interest rates.  From inception in 1975, all Bond Bank debt service has been paid by borrowers, but the amount of interest they paid was significantly reduced.   

What Can the Bond Bank do for You

During fiscal year 2022, the Bond Bank entered into 5 loan agreements to fund approximately $54.6 million in loans. Bond Bank loans funded 4 construction projects for communities and refinanced a loan for savings. The Bond Bank issued approximately $47.0 million in bonds to generate $54.6 million in funding. Bond Bank activity resulted in approximately $41.3 million in loans to authorized borrowers for new capital projects and $5.7 million to refinance a loan for savings. Bond Bank activity produced estimated gross savings of approximately $3.7 million to all borrowers. 

During fiscal year 2021, the Bond Bank entered into 57 loan agreements to fund approximately $353.5 million in loans, resulting in an estimated $51.7 million in savings. Bond Bank loans funded 6 new construction projects for communities and refinanced 51 loans of 18 communities for savings. The Bond Bank issued approximately $329.1 million in bonds during fiscal year 2021 that generated approximately $353.5 million in funding. Bond Bank activity resulted in $24.4 million in loans for new capital projects and approximately $304.7 million to refinance loans for savings. Bond Bank activity in fiscal year 2021 resulted in gross savings of approximately $51.7 million to all borrowers. In addition, the Bond Bank priced a forward delivery bond issue in fiscal year 2021 of approximately $5.7 million, which is anticipated to close in fiscal year 2022, and generate a $7.3 million loan for approximately $1.8 million in gross savings for 1 community.

During fiscal year 2020, the Bond Bank issued approximately $22.2 million in bonds that generated approximately $25.5 million to fund five loan agreements with two communities resulting in an estimated $1 million in savings. 

During fiscal year 2019, the Bond Bank entered into nine loan agreements to fund approximately $50.4 million in loans resulting in an estimated $4.3 million in savings. In fiscal year 2019, Bond Bank loans funded eight projects located in seven communities and refinanced one loan for savings. The Bond Bank issued approximately $44.2 million in bonds that generated $49.8 million and provided a $0.6 million direct loan, providing a total of $50.4 million in funding during the fiscal year.

During fiscal year 2018, the Bond Bank entered into one loan agreement to fund a $31.2 million loan resulting in an estimated $3.4 million in savings.

During fiscal year 2017 the Bond Bank entered into 27 loan agreements to fund $280.7 million of loans resulting in an estimated $41.2 million in savings.  Bond Bank loans funded 8 new construction projects located in 7 communities and refinanced 19 existing loans of 15 communities for savings.  In fiscal year 2017 totals was a $102.5 million loan to partially fund the Yukon-Kuskokwim Health Corporation's Paul John Calricaraq Project, which includes constructing and equipping the expansion of an existing hospital and a new primary care clinic in Bethel, Alaska.  This loan represents the largest single loan issued by the Bond Bank since inception.  The Bond Bank issued $255.0 million in bonds during fiscal year 2017 that generated approximately $280.7 million in funding.  Bond Bank activity resulted in $162.6 million in loans for new capital projects, and $118.1 million to refinance loans for savings.  Bond Bank bond activity in fiscal year 2017 resulted in gross savings of approximately $41.2 million to all borrowers.   

Some smaller communities are at a disadvantage in the financial markets. They may have lower bond ratings, and although credit worthy, have not issued bonds or notes, have little outstanding debt, or lack investor familiarity. The Bond Bank is able to borrow money at favorable interest rates to purchase the bonds of Alaskan municipalities and authorized borrowers. These municipalities and authorized borrowers then pay principal and interest to the Bond Bank on their debt.

During fiscal year 2015, the legislature passed, and the Governor signed into law a bill to authorize the Bond Bank to make loans to Joint Action Agencies and Regional Health Organizations, effective May 26, 2015.  Joint Action Agency lending is now part of the main political subdivision program.  Regional Health Organization lending is limited to no more than $205 million in total, no more than 49% of any single project where the other 51% of the project's funding is in place, and not more than $102.5 million for any single project.  

Whether you are a new community to the Bond Bank, or you already have loans outstanding, we are here to help you analyze your current debt service structure and see if there’s an opportunity to obtain new financing or perform a refunding of an outstanding series of bonds.