Industrial Development Bond Guaranty Program
The Arkansas Development Finance Authority's (ADFA) Bond Guaranty Program is designed to help companies access taxable and tax-exempt financing through national capital markets. The program addresses the financial strength challenges that many businesses face when attempting to secure bonds and provides a credit enhancement mechanism that serves as an alternative to traditional lines of credit or bond insurance.
About the Program
ADFA's Bond Guaranty Program is backed by the ADFA Bond Guaranty Reserve Fund, ensuring bondholders are protected in the event a borrower cannot meet its contractual obligations. The fund is further supported by ADFA's unrestricted cash reserves and liquidation proceeds from project assets, providing additional layers of financial stability. As a last resort, ADFA can issue its own guaranty bonds to replenish the Reserve, which can be repaid using daily interest earnings from State Treasury deposits.
Standard & Poor's, a leading financial rating agency, has granted the program an A+ rating, reflecting its strength and reliability. This investment-grade rating allows participating companies to access national capital markets and opens new doors for financing and growth. Standard & Poor's periodically reviews the program to maintain its high-quality assurance.
Manufacturing companies expanding, or retaining employment opportunities in Arkansas.