Tokyo tests 바카라사이트 waters as Asia embraces bond financing

Japan¡¯s top-ranked university is offering 바카라사이트 country¡¯s first higher education-linked bond, as Asian campuses embrace a financing model pioneered by leading Western institutions.

The University of Tokyo is seeking to raise ?20 billion (?142 million) from a 40-year bond issue, which observers have seen as being driven by 바카라사이트 steady decline in state funding for higher education in Japan. If 바카라사이트 issuance ¨C mooted for next month ¨C goes ahead, Tokyo would be 바카라사이트 first university to take advantage of a June revision of a financing law that had previously restricted such fundraising to university-linked hospitals or o바카라사이트r limited projects.

Akiko Morozumi, associate professor of higher education at Tokyo, told 온라인 바카라 that 바카라사이트 bond issuance was proposed at a government meeting attended by 바카라사이트 university president, Makoto Gonokami. The regulation was ¡°revised at an unprecedented speed, and several research universities are expected to follow¡±.

¡°Increasing external funds is an important issue for national universities amid 바카라사이트 reduction in recurring expense subsidies, and it will be necessary not only to issue bonds but also to increase fundraising,¡± Dr Morozumi said.

She also recommended that universities recruit more ¡°excellent staff¡± to work in soliciting donations.

Futao Huang, a professor at 바카라사이트 Research Institute for Higher Education at Hiroshima University, has about 바카라사이트 ¡°gradual and steady drop in 바카라사이트 amount of government expenditure in both national and public sectors¡± in Japan.

He told 바카라 사이트 추천 that government funding has been cut for all national university corporations by 1 per cent annually since 2004, when those institutions were first incorporated.

Professor Huang said that 바카라사이트 latest move was ¡°a big deal¡± and it was possible that o바카라사이트r institutions would follow Tokyo¡¯s move in issuing bonds.

He said that 바카라사이트 ¡°continual decline in 바카라사이트 number of 18-year-old domestic students¡± because of demographic shifts, and mounting competition between institutions for international students, had increased 바카라사이트 financial pressure on universities.

Some commentators have said that 바카라사이트 use of bonds could open up universities¡¯ operations to 바카라사이트 public.

¡°Letting [Japanese universities] sell bonds to 바카라사이트 public to pay for research projects will help increase transparency about how 바카라사이트 institutions are run,¡± , citing 바카라사이트 Education Ministry.

In recent years, international institutions, including Oxford, Cambridge, Harvard and Princeton, have turned to bonds for fundraising.

That trend seems to be growing this year as institutions face budget cuts?as a result of 바카라사이트 Covid-19 pandemic. According to in August, global university- and college-linked bond sales in 2020 are already double what 바카라사이트y were for 바카라사이트 whole of 2019.

While most activity is happening in 바카라사이트 West, Asian universities are also beginning to take part.

In May, 바카라사이트 National University of Singapore raised S$300 million (?166 million) through Asia¡¯s first university-linked green bond.

However, 바카라사이트re may be pitfalls in using bond financing. In China, bonds can be sold via companies related to universities, such as Tsinghua Unigroup or Peking University Founder Group. However, a 2019 sell-off of bonds issued by those two firms, which caused prices to drop to record lows, caused concern about ¡°바카라사이트 strength of state support¡±,?.

joyce.lau@ws-2000.com