MIT raises $550 million through taxable century bond sales
The Massachusetts Institute of Technology (MIT) has successfully issued $550 million in Series C Taxable Bonds, marking a significant step forward in the institution's ongoing campus renewal and development program. The bonds, maturing in 2114, were rated Aaa and AAA by Moody's Investors Service and Standard & Poor's Ratings Services, respectively.
These bonds are part of strategic investments that align with MIT's long-term vision, as outlined in the MIT 2030 framework. This comprehensive plan guides the physical development and renewal of MIT's campus and its surrounding innovation district, supporting the Institute's mission.
The proceeds from the bond issuance will be allocated to academic and research capital projects within the MIT 2030 framework, contributing to other strategic research buildings and infrastructure projects over the next decade.
Bond financing is a common method used by universities to raise funds for long-lived infrastructure assets. In this case, the funds will enable the continued acceleration of the campus renewal program, ensuring that MIT remains at the forefront of academic and research excellence.
Barclays Capital led the financing for MIT's Series C bonds, with JP Morgan and Morgan Stanley serving as joint bookrunners. The bonds are unsecured general obligations of the Institute, and they are callable prior to their scheduled maturity through a "make-whole" provision.
Investors in these bonds typically include individuals, pension plans, mutual funds, and insurers, reflecting MIT's creditworthiness. The ratings for the Series C bonds were accompanied by a reaffirmation of MIT's credit as AAA grade, with a stable outlook.
This bond issuance locks in a historically low cost of capital for a very lengthy period of time, providing MIT with the financial stability necessary to carry out its ambitious plans for campus renewal and expansion.
The funds raised from the Series C bond issuance will be directed towards academic and research capital projects within the MIT 2030 framework, supporting innovation and research at the Institute. This long-term financing strategy allows MIT to allocate resources towards other strategic research buildings and infrastructure projects over the next decade.
