Uni added to UPP bond

University investor specialist UPP has added another university to its bond, which has now been extended to over £500m and brought on board two global investment managers.

The University of Exeter scheme has become the latest to be involved in the bond initiative, which was launched by UPP in the first quarter of 2013.

A new £149.7m tranche of index-linked senior secured notes has been issued, increasing the quantum of notes issued under the programme so far to £531.8m.

Allianz Global Investors and Pension Insurance Corporation have invested in the latest tranche, following positive announcements in relation to higher education and international investment in Chancellor George Osborne’s Autumn Statement.

“We’re pleased to have completed the first investment from our UK Infrastructure Debt Fund in what is, for us, a new and exciting sector,” said Paul David, director of infrastructure debt at AllianzGI. “There is a significant undersupply of student accommodation in the UK and we are delighted to be working with UPP and the University of Exeter to help address this issue.”

UPP has so far invested £1.8bn in the UK higher education sector and has plans to invest a further £1bn over the next four years.