Cambridge University Issues its First-Ever Bond

Cambridge University has sold its first bonds in the amount of 350 million pounds (563 million dollars), according to The Wall Street Journal. The maturity of securities is 40 years, and the rate - 3.75 percent per year.

Cambridge plans to invest in accommodation, research facilities and other assets. In particular it will be improved the infrastructure for researches, academic activities and accommodation of employees.

It is worth mentioning that in the summer a similar placement of securities held De Montfort University, which offered 5.75 percent per year for their 30-year bond. The University sold the obligations at 110 million pounds for repairs and beautification of the campus.

Moody's assigned Cambridge highest possible rating - "AAA". Bankers and analysts noted that such long-term bonds would be attractive to pension funds and insurance companies, who wish to receive a higher percentage over a long time.

Bond issue can stimulate other British universities to do the same. Many of them have already received proposals from the banking community.

Cambridge University - one of the oldest in Europe, was founded in 1209. In 2012, over 18,000 students graduated it.