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Proceeds will be used to repay loans from the Federal Unemployment Trust Fund

BOSTON- Culminating a two-year, multi-agency effort to stabilize the Commonwealth’s Unemployment Trust Fund, the Commonwealth sold the largest Environmental, Social and Governance (ESG) municipal bond financing to date this week with its $2.6 billion special obligation bond transaction. The proceeds of the Bonds will be used to repay loans from the federal unemployment trust fund which were obtained during the height of the pandemic when unemployment in Massachusetts rose to historic levels and to finance an incremental deposit into the Commonwealth Unemployment Trust Fund to help moderate employer state unemployment tax rates and improve Trust Fund solvency.

Orders from over 130 different investors supported the financing, including $118 million from retail investors. Municipalities and state governments had orders that totaled nearly $300 million, and another $62 million came from state pension funds.

Despite volatile market conditions, including an inverted treasury yield curve and continued federal reserve board action on short term interest rates, all of the maturities saw an oversubscription in orders. Both serial maturities in 2027 (January and July) were oversubscribed by 2 to 5 times and the yields on both maturities were lowered by 2 and 4 basis points. The term bonds in 2029 and 2031 were two times oversubscribed, and bonds were repriced to lower yields by 3 basis points.

The Commonwealth is proud of the work that went into developing this innovative bond offering, which will provide employer rate relief as the economy continues to recover, while strengthening the Commonwealth’s unemployment system.

About the Massachusetts State Treasury

Under the leadership of Treasurer Deborah B. Goldberg, the Massachusetts State Treasury is comprised of 13 departments and agencies that serve the public through the Office of the State Treasurer and Receiver General. The Treasury is committed to embracing cutting-edge technology, implementing practical business strategies, and developing public-private partnerships to ensure economic stability, security, and opportunity for every Massachusetts resident. Treasurer Goldberg is the former President of the National Association of State Treasurers and is the Co-Chair of the National Institute of Public Finance. Visit to learn more and follow along on Facebook, Instagram, LinkedIn and Twitter.




Andrew Napolitano

Communications Director

(617) 367-9333 x614

Cell: (781) 403-0600


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