OKLAHOMA CITY (April 17, 2024) – The Oklahoma Capitol Improvement Authority, the state’s largest issuer of tax-backed debt, will return to the municipal bond market on Thursday for the first time since 2022. The Authority is scheduled to price nearly $168 million of fixed-rate State Facilities Revenue and Refunding Bonds, designated the Series 2024A and 2024B Bonds, to refinance outstanding bonds saving roughly $10 million over the next 10 years.
The bonds are rated AA– with a Positive Outlook by both S&P Global Ratings and Fitch Ratings. Rating analysts cite “adherence to conservative budgeting practices”, a “low debt burden”, and the state’s strong reserve position as important factors in the state’s credit rating.
The Authority was created in 1959 to provide bond funding for the construction of office buildings and other infrastructure for departments and agencies across the state. The Debt Management Division in the State Treasurer’s Office provides staff to the Authority.
In addition to administration of the Authority’s bond portfolio, staff oversees the new $600 million Legacy Capital Financing Fund, which was authorized by the Legislature and signed by the Governor last session. This program allows the state to self-finance authorized capital projects rather than issuing bonds and will serve as a valuable source of capital project funding in the near term, possibly replacing the need to issue bonds to finance new capital projects.
“Oklahoma's state income tax provides double tax-exemption for investors. Additionally, Oklahoma retail investors receive top priority in the purchase and allocation of the Authority’s bonds,” said State Treasurer, Todd Russ. “Our office is leading the state’s efforts to enhance our bond rating which results in better pricing, ultimately benefiting the state agencies who are borrowers.”
Please contact your brokerage firm or bank to inquire about participating in the bond sale. Additional information regarding the upcoming bond sale, including the Preliminary Official Statement, rating reports, and an investor presentation can be found by visiting OCIAbonds.com.
