Oxford University to raise almost $1 billion, due 100 years from now

Bloomberg London | Updated on January 15, 2020 Published on January 15, 2020

University of Oxford. File photo

The University of Oxford, which traces its roots back to the 11th century, plans to sell sterling notes maturing in 2117, as pound investors seek out names likely to ride out Brexit risks.

The oldest university in the English-speaking world held a call on Tuesday ahead of a potential tap of a 750 million-pound ($970 million) 2.544 per cent bond first issued in late 2017, said a source. Moody’s Investors Service rates the note Aaa, its highest grade.

The yield on the Oxford bond has dropped below 2 per cent, partly because the University’s global reputation and a weaker pound may help it attract international students amid potential Brexit upheavals. Market-wide high-grade sterling bonds yields have also fallen to the lowest since early October, aided by rising expectations for a possible Bank of England interest-rate cut.

Germany’s North Rhine-Westphalia state has already syndicated a new 2120 euro bond this year, amid a heightened early-January rush of deals in Europe’s primary bond market.

Published on January 15, 2020
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