Cambridge to raise 400 mn pounds from bond issue

Updated on: Wednesday, January 06, 2010

The University of Cambridge is planning to raise up to 400 million pounds from its first bond issue in order to fund two buildings, a newspaper reported Tuesday.

Cambridge, which needs to raise money for the one-off building projects, is following a trend set by Ivy League universities in the US to turn to the money markets for funding, The Times reported.

Andrew Reid, the university's finance director, told the paper: We usually raise money through benefactors but this time we need a significant sum, so are turning to other methods. At the moment, we are completely unleveraged. It worries me. But we are a very stable organisation and we need to manage our finances properly.

The university, whose assets are valued at about four billion pounds, has traditionally relied on government subsidy and research grants for about half of its annual 1.14 billion pound operating costs.

American universities that have issued new bonds in the past 12 months include Harvard ($2.5 bn), Princeton ($1 bn), and the University of California ($1.6 bn).

Cambridge to raise 400 mn pounds from bond issue

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