Ohioans invest with confidence in state projects

(COLUMBUS)-Ohio Treasurer Richard Cordray today announced that 2008 retail sales of Buckeye Savers Bonds set a record for the state.

“These are gold-plated investments in Ohio’s own highway infrastructure,” Cordray said. “We make it our priority to place these bonds in the hands of individual Ohio investors first. That effort benefits the state and also the individuals who buy the bonds.”

Cordray kicked off the issuance with an exclusive two day retail order period-an opportunity for individual Ohio investors to place orders-as part of the annual sale that helps fund highway and bridge projects around the state.

With the official closing of the sale tomorrow, the bonds will have generated record retail sales totaling nearly $105 million or 75 percent of the $140 million offered, marking the highest level of retail participation in program history.

While the state annually issues hundreds of millions of dollars in bonds to fund Ohio projects, most are placed in the hands of institutional investors, such as Wall Street investment banks, who buy them to hold in their own portfolios or for resale. The Buckeye Savers Bond Program is deliberately structured by the Treasurer’s office to give individual Ohio investors first priority of purchase, even ahead of the institutional investors. Individual Ohio investors benefit from the “triple tax exemption”-meaning that they will not have to pay local, state, or federal taxes on earnings from the bonds.

A large selling group of 16 banks and brokers with offices throughout Ohio took orders from investors. Retail orders were given first priority and were accepted April 21-23.

The 2008 Buckeye Savers Bond issuance will fund 16 highway capital improvement projects, including the implementation of the Intelligent Transportation System throughout Cuyahoga, Geauga, and Lake Counties; the new interchange on Interstate 475 in Lucas County; and roadway upgrades on State Route 8 in Summit County.

The retail bonds, issued in $5,000 denominations, pay a fixed interest rate semi-annually. Maturities were available every year from 2009 until 2018 and investors were able to select the term from one to ten years. The bonds are secured by revenues from highway user receipts and the full-faith and credit of the state of Ohio.