Allen & Overy advised Leicester based De Montfort University
on a GBP110 million bond issuance, the first public bond
issue by a UK university since 1998. Please enter
The issue proceeds from the 30 year bonds, which were rated
Aa1 by Moody's, will be used to invest in the
Raising funds through a public bond issue in the debt
capital markets is an innovative step for a UK university,
the most recent such issue being by the University of
Greenwich in 1998. However, it follows in the footsteps of
other public sector and quasi-public sector entities, such
as the Greater London Authority and housing associations,
who have opted to obtain funding through the debt capital
markets as a result of bank finance constraints and
decreased government funding.
International Capital Markets partner Geoff
Fuller commented: "The capital markets have
provided a way to fill the gap in funding for public sector
entities. Housing associations have been issuing bonds for
the past five years and have met strong investor interest
because of their stable business model. We expect
universities to follow suit."
Allen & Overy has an impressive track record advising on
public sector debt finance deals, including advising the UK
Debt Management Office on all of its gilt auctions and
syndications, advising Lloyds as arranger in respect of the
Greater London Authority's GBP600 million bonds in 2011
and acting on 29 of the 31 secured public bond issues in
the UK social housing sector since 2008.
The Allen & Overy team was led by International Capital
Markets partner Geoff
Fuller and counsel Beth
Collett, with the assistance of associate Joanna
Bell. Barclays Bank PLC acted as bookrunner.
For further information, please contact Margherita
on +44 (0)20 3088 4196.