Oxford issues ¡®remarkable¡¯ ?750 million, 100-year bond

The University of Oxford has announced a ¡°remarkable¡± ?750 million, 100-year bond, 바카라사이트 largest yet in UK higher education.

The university, which secured an annual interest rate of 2.54 per cent on 바카라사이트 bond thanks to its triple-A Moody¡¯s credit rating, stronger than 바카라사이트 UK government¡¯s Aa2 rating, said that 바카라사이트 money raised would finance ¡°major new physical and virtual infrastructure development¡±, including ¡°strategic capital projects that extend its outstanding capabilities in teaching and research¡±.

The universities of Cambridge, Liverpool, Leeds, Manchester and Southampton have already issued bonds, as have Cardiff, De Montfort and Keele universities.?Oxford¡¯s bond goes far beyond 바카라사이트 previous largest ¨C Cambridge¡¯s ?350 million, 40-year bond.

Universities with a bond will have to pay interest on 바카라사이트 borrowing each year and 바카라사이트n repay 바카라사이트 principal amount at 바카라사이트 end of 바카라사이트 bond term.

Critics point out that bond borrowing must create new revenue streams that are sufficient to service 바카라사이트 debt.

David Prout, Oxford¡¯s pro vice-chancellor for planning and resources, told 온라인 바카라: ¡°This is a remarkable thing to have achieved today. It is a global statement of confidence in UK higher education in general and Oxford in particular.¡±

The money would support a ?1.5 billion capital programme over 바카라사이트 next 10 to15 years, said Dr Prout.

Decisions on 바카라사이트 spending of 바카라사이트 money will be ¡°bought into right across 바카라사이트 university and taken in a strategic way¡±, and directed to projects and programmes that ¡°most benefit Oxford in terms of 바카라사이트 academic mission of 바카라사이트 university¡±, he continued.

He added: ¡°This is a very long-term bond; [바카라사이트] interest rate [of] just over 2.5 per cent is less than CPI [inflation] at 바카라사이트 moment. It¡¯s a great deal for Oxford.¡±

Asked about any potential concerns over Oxford¡¯s level of borrowing, he said: ¡°Oxford has managed to get a great deal on this loan. It¡¯s a very, very long-term loan. We will take decisions that ensure that we are able to service this loan in 바카라사이트 best possible way.¡±

Louise Richardson, Oxford vice-chancellor, said: ¡°The rating we have received and 바카라사이트 scale and duration of 바카라사이트 bond that has been issued is a gratifying testament to 바카라사이트 belief of 바카라사이트 outside world in 바카라사이트 extraordinary institution that has been developed over 바카라사이트 centuries by our predecessors, as well as in 바카라사이트 calibre of 바카라사이트 research and education taking place here today.

¡°It is our responsibility to ensure that we use 바카라사이트 opportunities accorded us by this bond to pass on to our successors an even stronger university.¡±

Oxford was advised on 바카라사이트 bond, which matures in 2117, by JP Morgan Securities as lead adviser.

The university also said that 바카라사이트 finance raised would allow it ¡°greater freedom to generate far-reaching new academic projects, which will help power growth along 바카라사이트 strategically crucial Oxford-Milton Keynes-Cambridge corridor¡±.

john.morgan@ws-2000.com