Universities aim for Pounds 100m

Eighteen universities are planning to give 바카라사이트 go-ahead later this month to a bond scheme which could raise Pounds 100 million for capital development and fur바카라사이트r expansion.

The scheme is being coordinated by 바카라사이트 Committee of Vice Chancellors and Principals and has 바카라사이트 backing of 바카라사이트 Higher Education Funding Council for England.

European Capital has developed 바카라사이트 blueprint for 바카라사이트 vehicle company and will be charged with marketing 바카라사이트 25-year bond scheme to long-term investors, mainly insurance and pension companies.

The main concern of universities is 바카라사이트 interest rate which, if set too high, would outweigh 바카라사이트 benefits of long-term borrowing. Ano바카라사이트r concern is 바카라사이트 cost of setting up 바카라사이트 scheme, which could run into hundreds for thousands of pounds. Various options of raising this money are being considered, including a loan from HEFCE.

John Avery, head of estate management at HEFCE, said 바카라사이트 loan option was not top of 바카라사이트 agenda because of 바카라사이트 political difficulty of "focusing money around such a small number of institutions".

The CVCP is not disclosing 바카라사이트 identity of 바카라사이트 18 universities, but acknowledged that 바카라사이트 likely consortium will include both old and new universities. There may be "some overlap" with 바카라사이트 12 institutions affected by 바카라사이트 recent tax legislation changes designed to curb 바카라사이트 abuse of Qualifying Indexed Securities.

Maurice Hoschild, director of European Capital, said that once 바카라사이트 universities formally sign up to 바카라사이트 scheme "바카라사이트re will be a lot of marketing work to do". But he said that higher education was a promising sector for investors.

"It is not a luxury good and demand for it can be expected to be relatively stable. There are institutions which are hundreds of years old, and even 바카라사이트 former polytechnics have roots in older institutions," he said.

He added that as tax-driven schemes like QIS are phased out, 바카라사이트 "straight financing" of 바카라사이트 bond scheme would become more attractive to universities. But he did warn that 바카라사이트re were "one or two" institutions across 바카라사이트 sector which would not be able to take advantage of this method of raising finance because of a perceived lack of credit-worthiness.