Mission Statement
To promote, develop, and advance economic growth and diversification in Alaska by providing various means of financing and investment.
This was the mandate given to the newly created Authority by the Alaska Legislature in 1967. Twenty years later, in 1987, the powers of the Authority were expanded to provide financing guarantees for exports of Alaska goods and services and its name was changed to the Alaska
Industrial Development and Export Authority.
AIDEA accomplishes its mission by providing various means of financing and assistance and by facilitating the financing of industrial, manufacturing and energy facilities, infrastructure, commercial real estate and equipment within the state. AIDEA also has the authority to own and operate facilities which advance this goal.
Overview
The Legislature created AIDEA to provide financing for Alaskan businesses to expand the economy of the state and provide jobs for Alaska.
AIDEA is about financing businesses, helping to diversify the economy of Alaska and creating jobs for Alaskans. AIDEA accomplishes its mission by providing various means of financing and by facilitating the financing of businesses in Alaska. AIDEA also has the ability to own and operate facilities that advance this goal.
History
When AIDEA was created in 1967, it was envisioned to be a pass through conduit agency providing Alaskan businesses with lower interest rates offered by tax-exempt financing by having AIDEA issue a bond which was then purchased by others. Changes to the tax laws in the mid 1980's dramatically changed the types of projects that are eligible for tax-exempt financing, however the Tax-Exempt Revenue Bond Program continues to help finance certain facilities at lower rates, based on the credit strength of the developer.
In 1979 and 1980, oil wealth began flowing into state coffers simultaneously with a downturn in the economy following the completion of the Trans-Alaska Pipeline System (TAPS). Legislation was enacted to expand the powers and financial capabilities of AIDEA to assist smaller businesses. The mechanism used to accomplish this was a capitalization of AIDEA with an existing loan portfolio (held by the Department of Revenue in the general fund) valued at approximately $166 million and $15 million in cash. Utilizing this newfound financial strength, AIDEA launched the Umbrella Bond Program (which is now the Loan Participation Program).
AIDEA's Development Finance Program got its start in the mid-1980's, when Cominco, in conjunction with NANA Regional Corporation, approached the state seeking assistance to develop the Red Dog Mine deposit. An approximately $128 million economic development loan portfolio held in the General Fund, was appropriated to AIDEA for this effort and the financial structure of the transaction resulted in the creation of AIDEA's Development Finance Program.
Through the years, AIDEA's mission has remained the same - encourage economic growth and diversification in Alaska by providing various means of financing and assistance to Alaska businesses. The programs, however, have changed based on the economy and the financing needs of businesses in Alaska.
Since inception, AIDEA's financing has served all regions in Alaska by:
- Purchasing more than $1 billion in loans;
- Issuing more than $1.38 billion in conduit revenue bonds;
- Developing AIDEA owned projects employing over 750 people annually; and
- Paying over $392 million in dividends to the state's General Fund
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