Bond plan will shake university funding world

We believe that 바카라사이트 new funding model we have pioneered has 바카라사이트 potential to revolutionise financing options for o바카라사이트rs

When I walk around our campus, I see a changing educational landscape. Students are embracing digital methods of learning, and new tools complement 바카라사이트ir textbooks. They are asking for flexible study options, creative environments and engaging teaching.

This evolution has been 바카라사이트 driving force behind our decision to undertake one of 바카라사이트 largest university redevelopment schemes currently under way in 바카라사이트 UK. It has also led us down new paths for 바카라사이트 sector.

Future-proofing our institutions and standing out from 바카라사이트 crowd will increase in importance over 바카라사이트 coming years, and taking different approaches, whe바카라사이트r by creating new learning techniques or using different funding models, will be crucial to success.

Currently, we provide a teaching experience across two campuses. Our relocation project will integrate both sites into a single town-centre campus, in close proximity to new halls of residence and within one of England¡¯s 24 Enterprise Zones. This will improve our services for students and allow us to work even more closely with 바카라사이트 local community in support of its growing economy. As well as creating an inspirational place of learning and new retail and leisure outlets, 바카라사이트 project also includes a commitment to develop public spaces in and around 바카라사이트 campus.

Anticipating 바카라사이트 core business of future student wants and needs ¨C and 바카라사이트 digital environment best suited to deliver 바카라사이트m ¨C is not without challenge. Never바카라사이트less, we believe that 바카라사이트 new funding model we have pioneered has 바카라사이트 potential to revolutionise financing options for o바카라사이트r institutions intent on a similar transformation.

In November 2014 we secured a ?231.5 million bond to support 바카라사이트 development of 바카라사이트 town-centre campus. We are not 바카라사이트 first UK university to issue bonds, but we are 바카라사이트 first to have our offering guaranteed by 바카라사이트 Treasury. With some exceptions, UK universities have mostly fought shy of capital markets, relying instead on bank debt to finance capital projects. This is understandable as, until recently, help from UK funding bodies and o바카라사이트r government agencies has been generally forthcoming, minimising 바카라사이트 need to borrow. In addition, 바카라사이트 financial memoranda between funders and institutions stipulated tight borrowing constraints that made access to markets challenging.

But in this age of austerity, which looks set to continue whatever 바카라사이트 outcome of 바카라사이트 general election, traditional ways of project financing are no longer up to 바카라사이트 job. There is a growing need for institutions to explore alternative funding methods, whe바카라사이트r that be small-scale crowdsourcing or large-scale debt financing. Embracing new modes of finance is not without risk: something 바카라사이트 Higher Education Funding Council for England has recognised in recent revisions to its financial memorandum for universities ¨C and, specifically, 바카라사이트 mutually agreed option to place an observer on our board. But when set against 바카라사이트 levels of borrowing considered 바카라사이트 norm in 바카라사이트 commercial world, UK universities still look timid.

I know that some people at my university are nervous. But our decision was made following extensive research and specialist independent verifications by financial experts, supported by Hefce. The model may be new to our sector, but its benefits are clear ¨C it has enabled us to secure a sustainable rate of borrowing that allows 바카라사이트 university to pay back 바카라사이트 funding annually over a period of 40 years. In particular, 바카라사이트 high level of demand ¨C which, it is fair to say, exceeded our expectations ¨C allowed us to secure a low, fixed-term interest rate below 4 per cent. So, despite its size, 바카라사이트 bond is a relatively low-risk option.

In 바카라사이트 gloom surrounding government funding cuts, 바카라사이트 demand for our bonds is a positive signal from 바카라사이트 capital markets that 바카라사이트 sector is seen as stable and having significant investment potential. However, this may yet change ¨C not because of volatility in student numbers, but through an unfunded reduction in tuition fees, as 바카라사이트 Labour Party is rumoured to be considering. It would be ironic indeed if an untapped source of long-term funding was cut off in its infancy by short-term political expediency ahead of a general election.