Supporting self-governance through infrastructure development

Ryan Bumrungkittikul, Director, Native American Financial Services, March 2024

<p>Supporting self-governance through infrastructure development</p>

Today, Indian Country faces an unmet and unfunded $50 billion need for infrastructure.1 Housing, hospitals, schools, roads, and bridges number among the countless Indian Country systems that need repair, rebuilding, or replacement. 

  • The Bureau of Indian Affairs (BIA) has accumulated more than $289 million in deferred maintenance for 29,000 miles of roads and 900+ bridges.2
  • The average age of Indian Health Services (IHS) hospitals is four times older than other U.S. hospitals.3
  • An estimated $1.3 billion is needed to bring Bureau of Indian Education (BIE) schools from poor to satisfactory condition.4
  • More than 120,000 Tribal homes lack access to basic sanitation.5
  • More than 68,000 housing units are needed today in Indian Country.6
  • 40% of all housing in Indian Areas are considered inadequate or derelict.7

 

Tribal government infrastructure projects

Types of projects KeyBank provides capital for:

  • Road construction
  • Qualified Tribal economic development projects
  • Water and utility infrastructure
  • Power generation and transmission
  • Broadband access
  • Tribal government buildings
  • Hospitals and clinics
  • Schools

Capital-raising expertise

KeyBank’s expertise includes the following products and structures:

  • Tribal economic development (TED) bonds
  • Tax and utility revenue bonds
  • Hybrid revenue and general obligation pledge structures
  • Investment-secured credit facilities
  • General obligation tax-exempt financing
  • Priority distribution bonds
  • Federal loan guarantee programs

Fast facts about Key’s Native American Financial Services (NAFS)

70+

years in Indian Country

$3B+

in credit commitments

Dedicated team specializing in serving the needs of Tribes and Tribal Enterprises

$2.5B+

in deposits

>200

relationships with Native American Tribes and Tribal Enterprises

$4.0B

in investment assets for Tribes and their Minors Trusts

20 yrs.

Qualified NAFS advisors’ average experience

KeyBank solutions

KeyBank has demonstrated expertise in providing financing solutions for Tribal infrastructure. Below are projects we have financed in Indian Country.

Navajo Nation

The Navajo Nation issued $52.9 million in debt to build a judicial and correctional center on Navajo land. KeyBanc Capital Markets facilitated the issuance of this unsecured Tribal general obligation tax-exempt bond, which received an S&P “investment grade” rating. This was among the first ever bond of this type issued by a Native American Tribe.

Stillaguamish Tribe

The Stillaguamish Tribe issued $22 million in tax-exempt debt to construct a Tribal Administration Building and a Natural Resources Facility. The Tribe worked with Key to lever the tax revenue it generates to secure financing for these two projects that provide essential services for Tribal members and protect the salmon runs along the Stillaguamish River.

Pascua Yaqui Tribe

Key closed on a $15M tax-exempt loan for the Pascua Yaqui Tribe in Arizona. Loan funds are being used for construction of a new 100,000-square-foot medical facility on Tribal Trust land.

Supporting Native America

NAFS actively supports these and other organizations that promote the interests of Indian Country:

  • National Congress of American Indians
  • The National Center for American Indian Enterprise Development
  • Native American Finance Officers Association
  • National Indian Gaming Association

To learn more, contact us

Whatever your goals or plans might involve, we offer assistance and support through our financial tools and firsthand experience. We look forward to speaking with you and encourage you to contact us.

1 National Congress of American Indians Infrastructure Report, 2017, page 3

2 National Congress of American Indians Infrastructure Report, 2017, page 12

3 National Congress of American Indians Infrastructure Report, 2017, page 14

4 National Congress of American Indians Infrastructure Report, 2017, page 15

5 Freddie Mac: LIHTC in Indian Areas, page 11

6 Freddie Mac: LIHTC in Indian Areas, page 1

7 Freddie Mac: LIHTC in Indian Areas, page 1

As a service to our clients, KeyBank is providing this brief overview to raise client awareness. KeyBank does not make any warranties regarding the results obtained from the use of this information. The information and recommendations contained herein is compiled from sources deemed reliable but is not represented to be accurate or complete. In providing this information, neither KeyBank nor its affiliates are acting as your agent, broker, advisor, or fiduciary, or is offering any tax, accounting, or legal advice regarding these instruments or transactions.

KeyBanc Capital Markets is a trade name under which the corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., member FINRA/SIPC (“KBCMI”), and KeyBank National Association ("KeyBank N.A."), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives. Banking products and services are offered by KeyBank N.A.  

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