University of Tokyo to sell bond in first of kind for Japan


TOKYO: The University of Tokyo is preparing a bond offering that would be the first of its kind in Japan, at a time when demand for higher-education debt is picking up overseas amid falling interest rates.

The university plans to sell 20 billion yen (US$189mil) of 40-year securities in early October, according to a statement from Daiwa Securities Group Inc.

The move follows relaxation of debt-sale rules by Japan’s education ministry in June – previously, national universities could only sell notes to finance their affiliated hospitals and other limited projects. Under the new rule, universities can finance research and education projects, according to the ministry.

The debt sale by the Tokyo college, generally considered one of the nation’s top schools, comes as investors rush to buy debt of elite universities in the US for their high credit ratings and long maturities.

American universities such as Harvard and Princeton have sold more than US$30bil of bonds this year, joining the global boom in corporate debt deals.

National educational institutions in Japan such as the University of Tokyo use taxpayer money or long-term official loans to fund their operations.

Letting them also sell bonds to the public to pay for research projects will help increase transparency about how the institutions are run, according to the education ministry. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Japan , Bonds ,

   

Next In Business News

CPO futures tracks weakness in soybean oil
Pestech secures RM64.9m contract for RTS Link
Mohamed Sharil steps down as Privasia chairman
Ringgit ends lower vs dollar amid surge in Covid cases
KLCI closes shade higher but broader market weak
Ryanair posts record loss, expects to break even this year
Hong Leong Bank extends assistance relief plans
Thailand cuts GDP outlook
Taiwan shares slide 3% as fresh Covid-19 outbreaks stoke recovery concerns
Bursa weakens as over 1,000 stocks in the red

Stories You'll Enjoy


Vouchers