University of Leeds raises £250m with first-ever bond issue

THE University of Leeds has raised £250m by issuing its first-ever bonds.

It has become the latest institution to adopt the practice, which has already been used by Cambridge and Manchester Universities.

The 34-year bonds are long-term debts issued by companies that can then be traded on the markets and will enable the university to be less reliant on Government funding.

The University will use the net proceeds to invest in teaching and research facilities, student accommodation and supporting infrastructure.

“Above all, this issue is an investment in our students and academic staff,” said Sir Alan Langlands, Vice-Chancellor of the University of Leeds.

“Over the next five years, it enables the University to invest in high quality facilities that will enhance student education and in cutting edge science, technology and innovation platforms that will drive progress in our world leading research.”

The issue has been priced at 3.125% and will be due in 2050. The University said the bonds are expected to be assigned a rating of Aa2 by Moody’s. The bonds were priced at a spread of 1.00% over the relevant reference gilt.

Sir Alan added: “We are delighted with the success of this issue and the confidence shown by a wide range of investors in the University’s achievements and future ambitions.” 

Barclays, HSBC and Lloyds Bank acted as joint bookrunners. Rothschild provided independent debt advice to the University and Clifford Chance and Eversheds provided legal advice.

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