Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Wales Online
Wales Online
Business
Sion Barry

Cardiff University raises £300m in the lowest interest bearing bond issue ever for a UK university

Cardiff University has successfully raised £300m in the lowest yielding bond issue ever seen in the UK education sector.

The university, the largest in the Wales, will pay 3.1% on the money raised. The bonds will mature in 2055 when the capital will be repaid to financial institution bond holders.

The raised finance will help support the university's ambitious innovation campus and for general corporate purposes.

Investment bank Rothschild acted for the university on the bond issue.

It follows on from recent finance raising bond issues from UK universities such as University College Oxford, King's College London and the University of Liverpool.

Related content: Cardiff University's highest ever global ranking

Speaking to the Financial Times, Francis Burkitt, a managing director with Rothschild, said of the Cardiff bond issue: "This is evidence of the continuing demand from universities to invest in their teaching, research and student facilities and evidence of demand from UK institutional investors for high quality long-dated paper.

"They have caught the market right."

Related content: Boost for compound semiconductor cluster from Cardiff University and IQE,

The UK market for university bonds is growing.

According to Dealogic £1.25bn of bonds were sold last year the highest annual amount on record.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.