Oregon Treasury’s $567 million bond sale includes $1,000 denominations
(The Center Square) – The Oregon State Treasury is having a $566.8 million General Obligation (GO) Bond offering through its Buy Oregon Bonds Program on Wednesday, April 24, that includes $1,000 denomination offerings.
The state will use the money to fund capital improvement and affordable housing programs statewide.
The offering includes over $299 million in third-party verified Sustainability Bonds to finance affordable and energy-efficient houses statewide.
“As we prepare to launch this offering, we recognize the profound long-term benefits this funding will provide Oregonians. The Buy Oregon Bonds Program promotes the wise use of state debt to build key infrastructure and provide critical funding that will support communities across Oregon,” State Treasurer Tobias Read said in a press release from his office. “The use of Sustainability bonds is central to this bond sale and will align these investments with Oregon’s environmental commitments.”
Usually, the cheapest bonds the state offers cost $5,000, according to Hoodline. However, the Treasury started offering the lower denomination last year, which netted more participation from local retail investors.
The Sustainability Bonds will help fund the State’s Permanent Supportive Housing and Local Innovation and Fast Track Housing Programs.
“Kestrel, an approved verifier accredited by the Climate Bonds Initiative, awarded the accreditation following an independent external review, in which they determined the projects and associated Series B Bonds would address housing needs in Oregon, meet green building requirements, and advance Oregon’s goal of reducing statewide energy consumption and greenhouse gas emissions,” the release said.
The aforementioned factors allowed Oregon’s bond offering to meet the Sustainability Bond Guidelines created by the International Capital Market Association.
This is the first time the state has achieved this third-party designation, which will help encourage a more diverse group of investors for this bond sale.
“Oregon’s strong economic position and Treasury’s attention to debt and budget discipline has allowed the state’s credit ratings to remain steady and solid, yielding favorable interest rates despite a market environment in flux,” the release said. “As a result, the State of Oregon saves millions of dollars in interest costs over time, keeping more money for programs and resources in the State’s general fund.”
More information on the Buy Oregon Bonds Program and upcoming bond offerings is available here.
