Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

UC philanthropic bond issue gets positive response

UC philanthropic bond issue attracts positive response

In its first 10 days the University of Canterbury’s philanthropic bond issue has attracted investments in excess of $15 million.

The offer, which opened on 9 October and closes on 30 November, is for $50 million of fixed rate bonds with the ability to accept oversubscriptions of a further $50 million.

Vice-Chancellor Dr Rod Carr says he is delighted with the positive response from investors.

“This reflects the willingness of New Zealanders to put their savings to work in New Zealand for New Zealand. The bond’s fair rate, flexible options and the University’s clear strategy are proving attractive to investors.”

Murray & Company and First NZ Capital, Joint Lead Managers of the issue, say they have accepted reservation requests from NZX firms in excess of $35 million.

The University is planning on investing as much as $500 million in capital projects in the next 10 years. Funds raised through the bond issue will allow the University to accelerate its plans for developments such as building refurbishments, new buildings, ICT infrastructure and alternative technologies.

Dr Carr says the proposed capital developments are necessary to ensure the University of Canterbury can provide New Zealanders access to a truly world-class tertiary education in their home country.

Investors in the bond issue will be paid 7.25 per cent interest for five years, with the rate then reset for a further five years, and be entitled to full repayment when the bonds reach maturity in 2019.

Dr Carr says the bond’s philanthropic options are a first for New Zealand.

"We will offer investors the option of reducing the interest to zero for some or all of their bonds – a decision that they can change should their circumstances change.

“During the term of the bond we will also invite investors to consider donating part, or all, of the sum owed on maturity. We will continue to pay the investor interest on bond principal they have donated if they so elect," Dr Carr says.

"This philanthropic element of the bond issue is optional, but will allow investors to direct their support to higher education while tailoring their contribution in light of their own circumstances which may change over the term of the bond.”

Subject to their taxable status, the Bondholder may be entitled to a tax credit or deduction on the donation of principal.

No money will be received until investors have a copy of the investment statement.

ENDS.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


International Business Forum: NZ EU FTA Coming Down To The Wire – Hold The Line

As negotiations accelerate to conclude an ambitious free trade agreement between New Zealand and the European Union, the NZ International Business Forum (NZIBF), representing a cross section of major exporters... More>>


MBIE: NZ space sector set to star in Moon mission
The New Zealand space sector is set to star in NASA’s CAPSTONE moon mission – with Rocket Lab launching a satellite to the Moon from New Zealand in June, and the lift-off of a separate NASA-NZ lunar research project... More>>



Air New Zealand: Relaunching 14 International Routes In 16 Days

Air New Zealand is gearing up for the busiest July in two years with the relaunch of 14 international routes in 16 days... More>>


Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>
Entrust District: Dividend Will Be Welcomed After Another Tough Year
We’ve all heard of the saying; “if it sounds too good to be true, it probably is” but for Aucklanders within the Entrust District, getting their share of Entrust’s 2022 annual dividend payment really is as good as it sounds... More>>

BusinessNZ: NZ Economy - Prevailing Headwinds
The latest BusinessNZ Planning Forecast reveals business and consumer confidence is low, with factors at home and abroad hampering our recovery... More>>