UC philanthropic bond issue fully subscribed

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."