UC philanthropic bond issue fully subscribed
1 December 2009
The University of Canterbury's philanthropic bond issue has been fully subscribed, raising $50 million that will allow it to accelerate its 10-year capital works programme and advance plans to develop a world-class learning environment for staff and students.
The University offered 50 million Fixed Rate, Unsubordinated, Unsecured Bonds with philanthropic options (with the option to accept oversubscriptions).
"I am delighted with what has been achieved. Investors have shown their willingness to invest in New Zealand for New Zealand," says Vice-Chancellor Dr Rod Carr.
"Investing to make a difference is how we described the offer. Its success will allow us to accelerate developments of our Biological Sciences facilities, science and engineering lecture theatres, and other laboratories.
"The bond offer's success also means the University will be able to invest its own funds in other projects such as the establishment of a new hub for student-related activities, significantly improving the student experience at UC."
Dr Carr acknowledges the valuable contribution of joint lead managers Murray & Company and First NZ Capital in structuring and distributing the innovative bond issue, and Duncan Cotterill lawyers.
He says the philanthropic nature of the bond offer will give investors the opportunity during the term of the bond to donate part, or all, of the sum owed on maturity while still receiving interest on the principal. They will also have the flexibility to forego some or all of the interest at any time during the term of the bond. Dr Carr says some investors have already committed to giving.
"As a result of the bond offer and other initiatives developed this year the University of Canterbury has ensured that it will have over $130 million in new funding to support its teaching and research activities over the next 10 years, that it would not otherwise have had.
"This achievement reflects the University of Canterbury's commitment to creating a learning environment that will ensure New Zealanders can continue to access a truly world-class education in their home country. I would like to thank our investors and other supporters for their commitment to helping us make a difference."
For further information please contact:
Corporate Affairs Manager
University of Canterbury
Ph: (03) 364 2910 or 021 417 289