Cardiff University has successfully raised £300m in the lowest yielding bond issue ever seen in the UK education sector.
The university, the largest in the Wales, will pay 3.1% on the money raised. The bonds will mature in 2055 when the capital will be repaid to financial institution bond holders.
The raised finance will help support the university's ambitious innovation campus and for general corporate purposes.
Investment bank Rothschild acted for the university on the bond issue.
It follows on from recent finance raising bond issues from UK universities such as University College Oxford, King's College London and the University of Liverpool.
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Speaking to the Financial Times, Francis Burkitt, a managing director with Rothschild, said of the Cardiff bond issue: "This is evidence of the continuing demand from universities to invest in their teaching, research and student facilities and evidence of demand from UK institutional investors for high quality long-dated paper.
"They have caught the market right."
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The UK market for university bonds is growing.
According to Dealogic £1.25bn of bonds were sold last year the highest annual amount on record.
