Harvard University Taps Credit Market for Up to $1.1 Billion

  • Richest U.S. school endowment had $40.9 billion as of June
  • Higher education is being upended by the coronavirus pandemic

Photographer: Victor J. Blue/Bloomberg

Lock
This article is for subscribers only.

Harvard, the richest U.S. university, is tapping the credit markets for as much as $1.1 billion at a time when it can secure lower funding costs after recent steep rate cuts made to address the coronavirus pandemic.

As much as $573 million in revenue bonds will be sold through a state agency and the proceeds will be used to refinance outstanding debt, Moody’s Investors Service said this week in a report. The ratings company said Harvard will also sell $500 million in taxable bonds for “eligible corporate purposes.”