Insight & Analysis

Press release: University of London secures £50m sustainability linked funding

Published: Feb 2023

9th February 2023 – The University of London (UoL), the UK’s leading provider of digital and blended distance education1 internationally, has secured a new £50 million sustainably linked funding package.

UoL has arranged a £50 million revolving credit facility (RCF) with Lloyds Bank to enhance its liquidity position with flexible covenants which provide greater freedom to enable future ambitions.

The bespoke package features ESG KPIs, aligning UoL’s sustainability commitment to the funding, which if achieved, will enable the University to benefit from reduced funding costs, allowing it to further support its students, stakeholders and wider ESG commitments.

Proudly rooted in London, with 45,000 students in 190 countries, UoL’s community and impact is global. It is also a federation of 17 esteemed higher education institutions, with more than 240,000 learners; collaboration is at the heart of its ethos.

Centrus, as corporate finance adviser to UoL, worked closely with the UOL by engaging with and obtaining terms from lenders to the Higher Education sector. Following an evaluation of the terms by Centrus and UoL, Lloyds Bank was selected as the preferred lender, having offered the most attractive overall funding solution. The new RCF features flexible terms providing the University with a firm basis to achieve its future ambitions and reduce liquidity risk.

Rita Akushie, Pro Vice-Chancellor Finance and Operations at UoL, said: “Sustainability is key to the University. This innovative structure ensures the University’s commitment to ESG is aligned with the funding provided by Lloyds Bank. The new facility also provides a robust basis to enhance our liquidity position, reduce risk and support our long-term strategy.”

Sam Goldman, Director at Centrus, said: “We are delighted to have supported the UoL in arranging this facility. The new RCF further enhances UoL’s robust position, while aligning its sector leading ESG activities with the funding provided.”

Randall Dawson, Relationship Director at Lloyds Bank, said: “The University of London has a strong track record of driving progress in higher education, from breaking down historical equality and diversity barriers, to enabling students to study wherever they are. This new sustainability-linked funding offers UoL the flexibility to build on its leading position on environmental and social issues.”

Footnote
  1. Where students learn via electronic and online media as well as traditional face-to-face teaching.

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