In a smart move, pension funds and institutional investors eagerly purchased a long-term bond released by the University of the West Indies, Mona, to raise $3 billion. This successful private placement of the 15-year bond, orchestrated by Sygnus Capital in mid-December, was met with an astounding response from the market.
Professor Densil Williams, the Principal of UWI Mona, expressed his excitement over the rapid uptake of the bond, stating that the demand was so intense that the decision was made to close off the offering within 24 hours. This enthusiastic market response prompted the university to explore further initiatives in collaboration with Sygnus Capital, leading to the launch of the UWI Mona Liability Management Programme.
With a focus on managing the institution’s debt more effectively, the programme highlights UWI Mona’s efforts to address high-cost debts and liabilities denominated in foreign currencies, ultimately aiming to reduce interest expenses significantly. By structuring a Jamaican-dollar bond to replace US-dollar debts with lower interest rates, UWI Mona expects to save approximately $120 million in interest costs.
These savings will be channeled into various revenue-generating projects across the campus, including the UWISTAR initiative for short courses, the establishment of a school of global health at the UWI Western Jamaica campus, and the development of a knowledge process outsourcing company to utilize student skills in the international market.
Furthermore, UWI Mona plans to enhance its student work programme by allocating $120 million from operational expenses towards employing students campus-wide for the academic year. With the newfound fiscal flexibility, the university intends to increase investments in student activities and pursue ventures that promise long-term revenue growth.
Reflecting on the decision-making process behind utilizing the savings from debt servicing, Professor Williams emphasized the importance of investing in initiatives that will drive future revenue generation. By opting to prioritize strategic investments over conservative financial practices, UWI Mona demonstrates a commitment to fostering innovation and maximizing returns for the institution.
As UWI Mona embarks on this new chapter of financial management and growth, the university’s leadership remains steadfast in their mission to cultivate a dynamic and sustainable campus environment where students can thrive and excel.
