This March, Rice University achieved a significant milestone when it raised $350 million through a bond issuance to fund a range of campus capital projects. Bond issuance refers to a process where an organization raises money from the public (investors) to fund long-term initiatives (e.g., new buildings) that it later repays with interest. Diana X. Garcia, Director of Treasury & Finance, and Larry Perez, Associate Treasurer, led the university’s efforts to leverage its stellar AAA bond credit rating to position it for growth.
Rice’s strong credit rating enabled it to achieve the lowest borrowing costs. Like a personal credit score, this rating affects both an organization’s ability to borrow money and its cost of borrowing. It is determined by factors such as financial health, borrowing history, economic conditions, and an assessment of its future direction and leadership stability.
The proceeds from Rice’s $350 million bond issuance are earmarked for capital developments, renovations, and infrastructure improvements to support the university’s growing research enterprise and academic ambitions. Upcoming projects include:
- Colleges 12 and 13
- Completing buildouts within the O'Connor Building for Engineering and Science
- Sarofim Hall for Visual and Dramatic Arts
- BRC lab expansions and enhancements
- Campus infrastructure, like tunnels and chillers
The recent bond issuance highlights a pathway for advancement for the entire university. With a clear vision, steadfast leadership, and an investment in its future, Rice is poised to embark on a transformative journey that will shape future generations.