Harvard announced it is exploring a $1.65 billion bonds sale in an attempt to raise capital through debt financing despite poor macroeconomic conditions, a move that comes after the University faced months of donor backlash.
The potential ten-figure bond sale, revealed in a University filing on Monday, would see Harvard’s debt reach $7.85 billion — higher than any point in recent history, including during the 2008 financial crisis.
The planned sale, which would be spearheaded by Goldman Sachs & Co. and Barclays Capital Inc., is unprecedented given its magnitude — even for an institution of Harvard’s size — but remains within the normal guidelines of financial management for corporations with annual revenues that exceed $5 billion.
A University spokesperson declined to comment on the filing.
The move provides the latest glimpse into the University’s financial situation which has been under stress as it faces donor backlash, a series of costly legal battles, and the threat of a possible Massachusetts endowment tax that would carry an annual cost of $1.2 billion.
The potential bond sale comes as the University — which relies on philanthropy for 45 percent of its annual revenue — has seen billionaire donors like Kenneth C. Griffin ’89 and Len V. Blavatnik pause donations to the University over its handling of antisemitism on campus.
https://www.thecrimson.com/article/2024/2/27/billions-debt-financing/