The University of Cambridge has entered the bond market for the first time after being awarded a better credit rating than the government or the Bank of England.
The university was awarded a first class AAA rating with a stable outlook by the ratings agency Moody's. The agency said the rating reflected Cambridge’s “outstanding market position, significant amount of liquid assets and strong governance structure”.
The 40 year £350 million security bond which has been issued by the university will yield about 0.6% more than a British government 40-year gilt.
The university says it will use money made from selling the bonds for general corporate purposes, including investment in research facilities, accommodation and other university assets.
– Professor Sir Leszek Borysiewicz, Vice-Chancellor of the University of Cambridge
“We are delighted by the success of this issue, and by the strong support shown by investors in the University and its mission. The proceeds will enable us to continue to invest in teaching and research at the highest international levels.”_