Southampton: University issues £300m bond to fund future growth
The University of Southampton has successfully issued a £300 million public bond – the largest such capital injection in its 155-year history - allowing the institution to invest in facilities and infrastructure as part of its new strategy.
The 40-year bond, which will mature in 2057 and is subject to a fixed interest rate of 2.25%, will provide around half of a £600m total investment the university is planning over the next 10 years, the remainder coming from internally generated funds. The bond issue was at a record low interest rate for a public bond issued by a UK university.
University of Southampton president and vice-chancellor, professor Sir Christopher Snowden, said: “The success of our bond issue is a huge vote of confidence by investors in our university and our strategy for the future. The University of Southampton is an exceptional university with a global reputation for our education, research and innovation. This investment will ensure we continue to provide a world-class teaching and research environment for students and staff, all underpinned by cutting-edge technology.”
University of Southampton chair of council, Dr Gill Rider, said: “I would like to congratulate the executive team on the successful issue of the bond, securing investment in the strategy which has the full support of the Council. It is vital the university invests with a long-term view of its global position and reputation, and the bond proceeds will allow us to make transformational investment in our campuses and supporting infrastructure.”
The University of Southampton is already in the top 1% of universities worldwide, and one of only 11 universities in both the world top 100 and UK top 20. Delivering against its strategy will enable it to secure consistent ranking in the top 10 universities in the UK and top 100 internationally.
Recent university campus developments have included the £140m Boldrewood Innovation Campus, developed jointly with Lloyd’s Register; a £50m investment in its new Life Sciences building; and the university has recently opened its new Chamberlain halls of residence.
Current major developments include the National Linear Infrastructure Laboratory, due to open towards the end of 2018; a dedicated Centre for Cancer Immunology, funded entirely through donations, due to open in 2017; and a Teaching and Learning Centre to provide enhanced education space for students, due to open in Spring, 2019.
The university will announce further plans for its programme of campus improvements over the coming 12 months.
