Skip to Content

Oregon State Treasury completes $610 million bond sale

Oregon State Treasury

Second, $124 million bond sale refinances lottery bonds

SALEM, Ore. (KTVZ) — Affordable housing, drinking water improvements, schools and earthquake readiness are just a few of the projects that will be funded through the Oregon State Treasury’s recent $610.2 million bond sale on behalf of state government. A second, $124.1 million bond sale underway by Treasury’s Debt Management team will refinance some of the state’s Lottery bonds to a lower rate, saving the state millions of dollars.

“When we can help state and local governments secure the lowest costs for project financing, those governments can do more for the people they serve,” said Treasurer Tobias Read. “That goes for new bonds and new projects, which bring much-needed economic activity to the state, as well as older bonds that can be refinanced at lower rates. It all adds up for Oregon communities.”

Treasury’s Debt Management team wrapped up the spring general obligation bond sale at the end of March after securing excellent low-cost financing. The sale includes just under $395.9 million in tax-exempt general obligation bond proceeds for 28 projects from eight different state government entities. Projects include capital improvements at public universities, improvements to Salem’s drinking water system, renovations and accessibility improvements to judicial buildings and the state capitol, and upgrades to the state’s Medicaid eligibility system.

Another $152.5 million of taxable Sustainability Bonds will fund affordable housing projects throughout the state, including new home construction and housing for people experiencing chronic homelessness. This was the fourth issuance of sustainability bonds by Oregon Treasury with proceeds dedicated to affordable housing.

Additionally, $178.5 million will fund seismic and school district grant program bonds for implementing seismic upgrades or other capital costs for public education buildings. These programs are overseen by the Oregon Department of Education and the Oregon Business Development Department.

The refunding of Lottery Bonds began April 12 and will officially close on April 27. The sale has been well received by the bond market, with the Treasury team securing a collective 1.803% interest rate for the combination of tax-exempt and taxable refunding bonds, resulting in $15.9 million in present value savings to the state. For the two-year state budgeting period that will end June 30, 2021, Treasury has saved Oregon more than $224.8 million by refunding previously issued bonds at lower interest rates.

“The Treasury team has been carefully watching and engaging with the bond market over the past few months to bring the lowest-cost financing to Oregon,” said Jacqueline Knights, who came on board as Treasury’s Director of Debt Management in September 2020. “Despite the many pressures on state government’s finances, Oregon has been thoughtful stewards of our state budget, and we continue to be viewed favorably by investors.”

In advance of the spring bond sales, Oregon Treasury received updated General Obligation bond ratings from Standard and Poors, Fitch Ratings, and Moody’s Investors Services. In reports published by the three firms, Oregon maintained its respective AA+/AA+/Aa1 ratings along with a stable outlook – a welcome confirmation of the state’s fiscal management throughout the COVID pandemic. Treasury's next state General Obligation bond sale opens this week and will close in May. 

New Projects Funded by Recently-Sold State GO Bonds 

SeriesProject Agency/RecipientProject NameAmount of Bond Proceeds
2021 Series ADepartment of Human ServicesONE Integrated Eligibility and Medicaid Eligibility System$  9,000,000
 Department of CorrectionsCamera System 5,383,804
 Department of CorrectionsRadio System 11,498,225
 Department of CorrectionsCapital Improvement & Renewal 24,478,039
 Higher Education Coordinating CommissionPublic Universities Capital Improvement & Renewal65,000,000
 Higher Education Coordinating CommissionOIT – OMIC Rapid Prototyping Education Lab 3,200,000
 Higher Education Coordinating CommissionOIT - Boivin Hall Rehabilitation 18,270,000
 Higher Education Coordinating CommissionPSU - Science Building 1 Renovation and Expansion 52,500,000
 Higher Education Coordinating CommissionUO - Huestis Hall Renovation 50,880,000
 Oregon Business Development DepartmentSalem Drinking Water System Improvements20,000,000
 Oregon Military DepartmentSalem & Pendleton Aviation Facility Emergency Enhancement 9,852,000
 Oregon Military DepartmentASLEP - Portland Jackson Armory 4,275,000
 Oregon Military DepartmentOregon Military Museum 2,000,000
 Oregon Youth AuthorityMacLaren West Cottages Renovation 4,093,653
 Oregon Youth AuthorityOak Creek Medical & Dental Renovations 435,817
 Oregon Youth AuthorityRogue Valley Facility Improvements 1,004,222
 Oregon Youth AuthorityTillamook Medical & Dental Renovations 869,100
 Oregon Youth AuthorityCapital Improvements 454,930
 Oregon Youth AuthorityMacLaren Infirmary and Pharmacy Renovation & Expansion 125,000
 Legislative AdministrationDocument Publishing and Management System 4,262,000
 Legislative AdministrationCapitol Accessibility, Maintenance & Safety 57,050,000
 Oregon Judicial DepartmentMultnomah County Courthouse 2,619,688
 Oregon Judicial DepartmentSupreme Court Building Renovation 27,820,000
2021 Series BDepartment of Administrative ServicesState Fair Horse Barn 3,000,000
 Department of Administrative ServicesState Fair Poultry Barn 2,000,000
 Department of Administrative ServicesState Fair Facilities Capital Improvements 5,325,925
 Higher Education Coordinating CommissionOIT – OMIC Sinter HIP Equipment3,000,000
 Higher Education Coordinating CommissionUO – ShakeAlert Seismic Detection System7,500,000
TOTAL      $395,897,403

For More Details

About Oregon Treasury

The Oregon State Treasury improves the financial well-being of all Oregonians. We provide low-cost banking, debt management, and investment programs for governments and empower Oregonians to invest in themselves and their loved ones through the Oregon College Savings Plan, Oregon ABLE Savings Plan, and OregonSaves.

Article Topic Follows: Oregon-Northwest

Jump to comments ↓

KTVZ news sources


KTVZ NewsChannel 21 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content