The Oregon State Treasury recently completed a $990 million General Obligation (GO) bond sale through its Buy Oregon Bonds Program. Proceeds from the sale will fund projects for affordable housing, facility improvements at K-12 schools and state universities, and emergency readiness. Of the nearly $1 billion in bond offerings, over $109 million was purchased by Oregon retail investors.
“Treasury is proud to coordinate the sale of state bonds to help improve our schools and other state facilities, as well as funding for the development of affordable housing. This bond sale offered Oregonians an exciting, and equitable, opportunity to invest in our state. I am thrilled with the level of interest we saw from local investors,” said Oregon State Treasurer Tobias Read.
Through the Buy Oregon Bonds Program, Oregonians were offered an opportunity to invest in Oregon through the bond sales $1,000 denomination offering, lower than the normal $5,000 denominations. The goal of the reduced offering was to attract a wider range of local investors and provide Oregonians equitable opportunities for investing in the state. The $109 million in bond purchases by Oregon retail investors was the largest in recent history for bond sales.
The sale included $809 million in tax-exempt bonds that will fund 13 projects for education, state, and local government facilities including seismic upgrades and other safety improvements. Another $184.5 million of taxable bonds, of which $176 million are Sustainability Bonds, will support affordable housing across the state as well as capital improvement projects for state universities. This was the seventh issuance of Sustainability Bonds by the Oregon State Treasury with proceeds dedicated to affordable housing.
Treasury’s Debt Management team wrapped up the GO bond sale on March 15, 2023, after securing favorable financing despite a market environment in flux. As a result, the State of Oregon is estimated to get a $40 million boost to the general fund thanks to savings in interest costs over time.
Allocation of bond proceeds by category for expected projects include:
- K-12 schools, community colleges, and state universities – $321.2 million
- Affordable housing – $175 million
- State parks and other state facilities – $198.2 million
- Judicial and public safety – $224.5 million
- Emergency management – $5 million
