The State of Oregon is upping its investment game with a $566.8 million General Obligation Bond sale through the Buy Oregon Bonds Program. Scheduled for April 24, this financial maneuver aims to boost affordable housing and government capital projects throughout Beaver State. Unique to this sale is the inclusion of $299 million worth of Sustainability Bonds set to shore up the creation of energy-savvy, budget-friendly homes.
According to the Oregon State Treasury, this latest maneuver is not just about generating capital. It's a strategic move to seed long-term societal and environmental growth. State Treasurer Tobias Read touted the sale, "The use of Sustainability bonds is central to this bond sale and will align these investments with Oregon's environmental commitments." These green-tinged bonds are expected to sprinkle fiscal fairy dust on the State's Permanent Supportive Housing and Local Innovation and Fast Track Housing Programs.
Credited by Kestrel, which has the nod from the Climate Bonds Initiative, these bonds have jumped through the hoops of an independent external review. They tick all the boxes necessary to adhere to the stringent Sustainability Bond Guidelines the International Capital Market Association laid out, ultimately making this Oregon's debut in snagging the third-party designation, as reported on the official press release. This badge of approval could woo investors from far and wide when the bonds hit the market.
And there's a cherry on top for individual investors in Oregon, as the bond sale will feature $1,000 denominations – a bargain compared to the usual $5,000 pop. This isn't a one-off; the Treasury kicked off these lower denomination offerings in 2023, which led to an all-time high in local retail investor turnout. Despite market uncertainty, the steady hand of Oregon's credit ratings has maintained a firm grip on favorable interest rates, promising a thrifty future for the state's coffers.
The Oregon State Treasury continues to strengthen the state's fiscal health by providing a suite of financial services for governments and citizens, from banking to savings plans – including handling unclaimed properties that many might not even know they had a claim to.
