MIT sells $500 million in taxable century bonds
Earlier today, MIT sold $500 million in Series E Taxable Bonds, maturing in 2116 and yielding 3.885 percent. This yield marks an all-time low for the costs of a 100-year bond. The proceeds from these bonds will be used to further advance MIT’s ongoing campus renewal and development program, including academic and research capital projects within the MIT 2030 framework. Bond financing is a type of long-term borrowing frequently used to raise money for long-lived infrastructure assets. Investors purchase the bonds from the issuer, in this case MIT, which commits to make periodic interest payments and repay the original principal on a certain date. MIT’s “century bonds” are set to mature 100 years from now. Investors typically include individuals as well as pension plans, mutual funds, and insurers. MIT 2030 is a framework for guiding the physical development and renewal of MIT’s campus and its surrounding innovation district in support of MIT’s...