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.