Centrus arranges £70m private placement for University of Derby

Transaction Overview

 The University of Derby is an award-winning university, committed to delivering economic, social, and cultural prosperity to its 23,000 students. 

Following a competitive funding process, a £70m private placement was secured, featuring highly attractive, fixed rate, 35-year, terms. It is the University’s first debt capital markets issuance and was arranged by Centrus, who acted as corporate finance advisor.

The issuance will fund a new state of the art business school, a core part of the University’s long-term strategy. 

Structured with a 12-month deferred tranche, allowed the funding to match the project programme. Further, the funding incentivises the University’s commitment to social inclusion and equality. It does so by providing a discount if the target set by the University for reducing the attainment gap is achieved. 

“The new Business School is pivotal to our role as a civic university and the development of our city campus, enhancing the teaching and real-world learning experience for our students and staff.

Centrus, and Mills & Reeve, provided outstanding support through the process, contributing to the successful outcome achieved. We are delighted our new borrowing arrangements link to our inclusion and equality commitments, given these commitments to the University’s strategic agenda.” 

Craig Jones, Chief Financial and Commercial Officer – University of Derby

“It’s been a pleasure to have supported the University arrange funding so key to their long term-strategy. This excellent outcome was achieved against the backdrop of significantly volatile financial markets. A key element of the success obtained was a carefully targeted investor and credit positioning strategy, on which we worked closely with the University to develop and implement.

We see this transaction as part of a broader trend towards universities utilising debt financing for capital projects across the sector.” 

Phil Jenkins, Managing Director – Centrus

“We are delighted to have supported the University on its private placement. It was a pleasure to work with the University at every step in the transaction, providing help and advice throughout. It was also rewarding to work on a project that will have such a positive impact on the University, its students and staff, as well as the wider community in Derby.” 

Matthew Howling, Principal Associate – Mills & Reeve

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