Skip to content

Oxford college joins universities seeking funding in capital markets

01 May 2015

Allen & Overy said today that the debut GBP40 million bond issue by University College in the University of Oxford, one of the leading universities in the world, underlines a shift in how UK higher education institutions access finance.

The bonds, with a maturity date of 2065, are the first to be sold by an Oxford college and will be listed on the London Stock Exchange. The proceeds will be used for general corporate purposes. Oxford follows De Montfort, Cambridge, Manchester and Northampton University in accessing the capital markets.

The Allen & Overy team advised Credit Suisse as lead manager on the transaction and was led by capital markets partner Geoff Fuller with support from counsel Beth Collett and associate James Avison.

Geoff commented: “We are seeing increasing levels of interest from UK universities in accessing the capital markets, which is an established practice on the other side of the Atlantic. The funding landscape for UK university teaching has changed significantly in the wake of restricted bank lending and a reduction in government funding, so it is logical that institutions are turning to the capital markets in search of solutions which provide long-term financial health. We have no doubt that others will follow.”

For further information, please contact Rebecca Hooper, rebecca.hooper@allenovery.com, on +44 (0) 20 3088 2152.

Related expertise