University of Manchester to raise £300m
THE University of Manchester has launched a £300m bond issue paying 4.25% to 2053.
The university, which in 2011-12 had total income of £807.3m, and has more than 40,000 students and around 9,000 staff, said the proceeds of the fundraising, some £293.2m would be used for “general corporate purposes”.
The joint lead managers of the issue are Barclays, HSBC, The Royal Bank of Scotland, while National Australia Bank is co-manager.
Further details are expected to be announced on Thursday, although it is reasonable to assume some portion of the funds will go towards the University’s £1bn Campus Masterplan, which was announced last year.
Phase One of the masterplan, costing around £700m, is scheduled for delivery between 2012 and 2018.
It includes plans to build a new Manchester Engineering Campus Development, new centres for the School of Law and Manchester Business School, a major refurbishment of the University library and the University of Manchester Students’ Union and a new Medical School.
Outline plans have been drawn up for a second phase which is expected to cost around £300m and would be delivered between 2018 and 2022.
It is currently intended that the second phase will create a Biomedical Campus, a new health centre, and refurbishments of the Schools of Computer Science, Earth, Atmospheric and Environmental Sciences, Mathematics and Chemistry.
