The Idaho Housing and Finance Association sold $535.8 million in bonds to finance affordable housing improvements.
The association issued the bonds in two series. The tax-exempt 2024 Series A bonds, consisting of $290.9 million, mature between 2024 and 2054, paying interest at rates between 3.1% and 6%. The federally taxable 2024 Series B bonds, consisting of $244.9 million, mature between 2034 and 2054, bearing interest at rates between 4.97% and 6.25%. The securities received a rating of Aa1 from Moody’s Investors Service.
“The Aa1 rating reflects that the indenture’s financial performance will strengthen, amplified by robust bondholder security primarily composed of mortgage-backed securities,” Moody’s analysts wrote.
The bond proceeds will finance the purchase of mortgage-backed securities, which is one of the ways the Idaho Housing and Finance Association supports its mission of creating affordable housing. The association is looking to price an additional $300 million in bonds later this month.
The association is a state agency that looks to facilitate “stable, safe, and affordable housing,” according to its website. The bonds are special obligations of the association, payable by state sales taxes.
Barclays Capital Inc served as lead underwriter on the issuance, purchasing the bonds for $545.5 million. The price reflected a premium of $13.3 million and a discount of $3.6 million.