Bonds issued for property development finance

05 January 2010

Written by Gavin Elley

Companies looking for property development finance in 2010 may be turning towards issuing bonds, according to a new report.

Those looking for cash to pay for the development of property are increasingly opting for this method of fundraising, the Times noted.

Universities, the government and Football Clubs have all offered this kind of option in order to raise money for its own use and property development.

"The reason for the surge in bond finance is that the crippled banks have been shut out of the lending market," said the publication.

Lancaster University has already issued bonds and Cambridge is looking to raise £300 million through this method in order to finance the development of research and residential facilities at the institution.

When companies raise money in this way, there are fewer restrictions on how the money can be used than is occasionally imposed by banks or financial institutions. It can sometimes also be cheaper.

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