The University of Canterbury is going to launch a philanthropic bond issue with a view to raise as much as $100 million.

Vice-chancellor Rod Carr informed that the university would issue a retail bond at a rate of 7.25 per cent and after 5 years at 175 basis points over the swap rate.

It was informed that the university wants to undertake a capital works program valuing around $500 million over the approaching 10-year period.

The university will sell $50 million of 10-year fixed rate bonds with an option to accept $50 million of over subscriptions.

Interest will be paid to the investors through university's operating surplus of between $10 million and $20 million annually.

Rod Carr said, "We think New Zealanders will see this as an opportunity to invest in New Zealand and for New Zealand."

It is worth mentioning here that the University of Canterbury is the first one in the reason to raise money via bond to fund capital projects.

The offer is hoped to open on Oct. 12 and close on November 30.