For the first time in its 800-year history, Cambridge University is planning to issue bonds to raise money from the markets, a varsity official said. The university is considering turning to the bond market in a bid to raise £400 million to fund two of its capital projects — to develop its residential and research facilities.
Andrew Reid, the university’s Finance Director, has admitted he was worried by the step into the relative unknown but insisted that it was the best way to secure the huge sums of money required for two one-off building projects.
“We usually raise money through benefactors but this time we need a significant sum so are turning to other methods. At the moment we are completely unleveraged. It worries me. But we are a very stable organisation and we need to manage our finances properly,” he said.
“We remain open to bank financing, private placement or public bonds but the value of funding we anticipate needing, and the term (30 to 40 years) suggests a bond issue may be the best way forward,” he added.
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