Centrus arranges £50m Sustainability Linked RCF for University of London

Transaction Overview

University of London (“UoL”), is the UK’s leading provider of digital and blended distance education internationally, with 45,000 students in 190 countries.

UoL is also a federation of 17 esteemed higher education institutions, with more than 240,000 learners; collaboration is at the heart of its ethos.

Centrus supported UoL in arranging a new £50m sustainability linked 5 year revolving credit facility (RCF) with Lloyds, featuring flexible covenants and enhancing the University’s liquidity and credit risk profile.

Centrus Solution

Centrus, as corporate finance advisor to UoL, worked closely with the University through engaging with and obtaining terms from lenders to the HE sector. 

This included preparation of comprehensive materials to position the University’s credit and operating strengths. Centrus utilised its market insights to enable strong terms to be negotiated from a range of potential lenders.

A report was prepared for Committee evidencing Lloyds offer as providing the most flexible and cost effective solution, best achieving the funding objectives, while also aligning with UoL’s commitment to ESG.

Outcome

• £50m RCF arranged, enhancing UoL’s liquidity position with flexible covenants which provide greater freedom to enable future ambitions.
• The funding is sustainability linked (“ESG”), a new innovation for the sector, enabling UoL’s ongoing commitment to sustainability to be aligned with funding.
• Through achieving set ESG KPIs, the University benefits from reduced funding costs, with cost savings able to directly support UoL’s students, stakeholders and broader ESG commitments.

“Centrus’ support has been invaluable, driving the best terms possible for UoL, providing assurance throughout the process, guiding us in a challenging market environment and helping us achieve this great outcome”

Rita Akushie, Pro Vice-Chancellor Finance & Operations – University of London

“We are delighted to have supported the University in arranging this facility. The new RCF further enhances UoL’s robust position, while aligning its sector leading ESG activities with the funding provided”

Sam Goldman, Director – Centrus

For more information, please contact Sam Goldman, Director at Centrus.

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