The University of Leiden has announced plans to raise €15m from 15,000 callable fixed income bonds. The perpetual bonds - issued via Belvédère Academia Leiden University with Rabobank International as arranger - will pay an annual coupon of 3% and can be called by the issuer annually from 2041 onwards. If early redemption does not take place in 2041 the annual interest will be raised to at least 5.2%.
The university, which was founded in 1575, will use the money to renovate a number of its properties in the historical centre of Leiden. Buildings such as the Sterrenwacht, Hortus Botanicus and the Academy are among those earmarked. The university said it will approach 50,000 former students this week because of their special links with the institution.
The Dutch Ministry of Education, Culture & Science has granted Belvédère the status of a cultural fund, which means the bonds are seen as a 'cultural investment' and Dutch taxpayers who invest in them are eligible for a tax break. The bond will pay 4.9% in the first year, 4.6% in the second year and 4.2% in subsequent years.
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