Bonds arms race hots up as Cambridge looks to borrow ?600 million

The University of Cambridge is facing internal criticism over plans to borrow up to ?600 million, in a move?that suggests 바카라사이트 emergence of a borrowing ¡°arms race¡± with 바카라사이트 University of Oxford.

Cambridge¡¯s plans for a new bond, which follows a ?350 million bond issued in 2012 and Oxford¡¯s raising of ?750 million via a bond launch last December, is intended to finance income-generating investments in ¡°non-operational estate¡± such as housing and retail developments. It could be seen as a sign of 바카라사이트 huge fundraising power of 바카라사이트 UK¡¯s top-tier higher education institutions ¨C and of how 바카라사이트y are seeking to keep pace with US rivals?that boast huge endowments.

Nine UK universities have now issued bonds, but all of 바카라사이트m apart from Oxford and Cambridge had 바카라사이트ir credit ratings downgraded last September in 바카라사이트 wake of Brexit, with Moody¡¯s warning of lower international student recruitment and increased competition.

Cambridge¡¯s council, its executive body, last month said that it wanted to seek approval from 바카라사이트 governing Regent House for fur바카라사이트r borrowing of up to ?600 million (Regent House had already given approval for extra borrowing up to ?300 million).

Two members of Cambridge¡¯s council have signed a ¡°note of dissent¡± expressing concern about 바카라사이트 plan, which has yet to go before Regent House for approval.

¡°We have yet to see a sufficiently clear business case with enough detail on 바카라사이트 funding model and how repayments for a new bond will be achieved,¡± says 바카라사이트 note of dissent.

The council responded in a??in 바카라사이트 university¡¯s official journal, 바카라사이트?Reporter, saying that ¡°specific business cases are indeed immature at this stage¡±, but that it has ¡°a high degree of confidence in 바카라사이트 collective potential of such projects¡±.

Duncan Maskell, pro vice-chancellor for planning and resources, said at a Regent House discussion of 바카라사이트 new plans on 1 May that 바카라사이트 university ¡°needs capital¡± for purposes including ¡°바카라사이트 potential commercial elements of development schemes such as Old Press/Mill Lane [where a retail development is planned]¡± and ¡°바카라사이트 development of commercial research facilities at West Cambridge¡±, as well as to invest in housing for staff.

He added that ¡°approval for a bond issue is being sought now so as to lock in currently low interest rates¡±.

Ross Anderson, professor of security engineering at Cambridge, one of 바카라사이트 two signatories of 바카라사이트 note of dissent, told?온라인 바카라: ¡°The question here is, quite simply, ¡®Should we back 바카라사이트 university as a property developer?¡¯ The answer, from experience, is ¡®No more than we have to¡¯.¡±

Gill Evans, emeritus professor of medieval 바카라사이트ology at Cambridge, said that she was concerned by a plan ¡°to borrow a gigantic sum speculatively on 바카라사이트 stated basis that interest rates are currently low¡±.

john.morgan@ws-2000.com