Cambridge gets into Bond-age

For the first time in its history, Cambridge is issuing a financial bond.

For the first time in its history, Cambridge is issuing a financial bond.

The investment instrument will be a £350 million 40-year bond which is expected to be used to build new student and staff housing and research facilities, as well as to renovate existing sites.

The news came following its credit rating being released by bond credit raters, Moody’s, last week as a triple A with a positive outlook. This makes Cambridge a safer investment than the UK government, whose rating is a triple A with a negative outlook.


 Your university is officially a safer investment than these poor bastards

Credit rating agency Standard & Poor’s has rated four UK universities in the past: King’s College, London, and Lancaster, which have issued bonds in the past, are rated AA and A respectively, while Sheffield and Nottingham are rated in the lower AA- level.

This makes Cambridge the UK’s safest university to invest in.

This is the second bond issued by a UK university in recent years. In July, De Montfort issued a £110 million 30-year bond, the first issued by a UK university in 14 years.

However, this sort of fundraising is more common in the USA where Harvard, Yale and many other Ivy League schools regularly issue bonds.

Vice-Chancellor Professor Sir Leszek Borysiewicz said: “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.”