Mills & Reeve advises on £600m pioneering bond issue

We advised the University of Cambridge on its £600 million bond issue, which will be used to invest in the University’s revenue-generating projects and other facilities.

The University of Cambridge has issued £300 million of 50-year index-linked debt (referencing CPI) and £300 million of 60-year conventional fixed rate debt. The proceeds of the bonds will be used to support revenue-generating projects across the University. Our banking team jointly advised the University with Clifford Chance, the fourth such collaboration between the two firms on higher education public bond issues.

The CPI-linked issue is particularly innovative, and is believed to be among the first of its kind in the UK bond markets. Both bonds are rated AAA by Moody’s, the highest credit rating that it awards. 

We have worked on a number of innovative fund structures in recent months, including a £15 million investment from Cambridgeshire County Council Pension Fund to Cambridge Building Society to support more people in buying their own home.

Sarah Seed, Partner at Mills & Reeve said: “We always enjoy a challenge and worked really hard with the University and Clifford Chance to deliver something that was new and innovative. The market’s reaction to this has certainly proved that the University were right in their approach.” 

Commenting on the bonds, the Vice-Chancellor, Professor Stephen J Toope, said: “We are delighted by the success of today’s bonds, which shows the confidence that investors have in the University, its mission, and its growth strategy in the years ahead.” 

The Mills & Reeve team was led by Banking partner Sarah Seed and principal associate Matthew Howling. We previously advised the University on its 2012 £350 million 40 year bonds, and more recently advised the University of Southampton, Cardiff University and the University of Manchester on their public bond issues.


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