Oregon State Treasury Completes Total Of $1.48 Billion In Bond Sales Despite Historic Market Instability

Last week, the Oregon State Treasury successfully completed two major bond sales through its Buy Oregon Bonds Program, providing nearly $1.5 billion for statewide projects and programs, including affordable housing, educational facility improvements, pollution control, and agricultural grant programs.

“Oregon bonds continue to attract strong investor demand, offering a solid investment opportunity even amid ongoing volatility in national financial markets driven by federal policy shifts and tariff-related challenges,” said Oregon State Treasurer Elizabeth Steiner, MD. “The strong performance and investor response to these offerings demonstrates Oregon’s fiscal resilience and Treasury’s thoughtful stewardship of the state’s debt.”

Amid historic market instability not seen since the COVID-19 pandemic, Treasury’s Debt Management team worked closely with financial partners to monitor conditions and time the sales for optimal results. This diligent work, combined with the state’s strong credit ratings, contributed to the oversubscription of both sales and secured low-cost financing, saving Oregon millions of dollars.

The first sale, a $925 million General Obligation Bond issuance, featured 3^rd-party verified Sustainability Bonds and lower denomination offerings to broaden investor participation. Proceeds from this sale will fund approximately 20 projects and programs across 12 state agencies, including affordable housing, pollution control, and capital improvements to the State Capitol, K-12 schools, public universities, and other state facilities.

The sale’s Sustainability Bonds component, totaling $301 million, will support Oregon’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.

Later in the week, Treasury took advantage of another favorable market window to issue $555 million in Lottery Revenue Bonds. These proceeds will support approximately 34 projects and programs from nine (9) state agencies. Fund projects include city and community college capital improvements, such as the construction of a new ballpark for the Hillsboro Hops minor league baseball team and renovations to the Center for Native Arts And Cultures, as well as seismic improvements to transportation infrastructure and statewide programs like the agricultural irrigation modernization grants program.

The sale also included a $250 million refunding of existing state debt component to reduce debt service costs and increase capacity for future infrastructure investments. The refunding is projected to yield approximately $11.2 million in present value savings.

“The proceeds from these bond sales will support vital projects that improve the quality of life for Oregonians, invest in our schools, expand affordable housing, and strengthen our state’s infrastructure,” said Treasurer Steiner. “These investments reflect Oregon’s commitment to developing resilient communities and promoting the well-being of Oregonians.”

For more information about the Buy Oregon Bonds Program and upcoming bond offerings visit: www.BuyOregonBonds.com