Backed by an endowment that has rapidly recovered since the recent depths of the recession, the University borrowed $250 million on Wednesday through a bond auction as part of its efforts to restore capital spending over the next several years.
The University’s ongoing 10-year capital plan, lasting through 2017, was cut by nearly $900 million two years ago following a significant drop in the value of its endowment. The plan was increased to $2.7 billion from $2.4 billion in January, University Associate Treasurer Matthew Kent said to Bloomberg.
The endowment posted losses of 24 percent for the fiscal year ending on June 30, 2009, before growing 15 percent in the subsequent year. It gained another 15 percent in the nine months following June 2010 according to a report released by Moody’s earlier this month.
“As the economic climate has improved and the University financial outlook has improved, we’ve allowed the capital plan to modestly expand,” Kent said.
The proceeds from the auction, which issued tax-exempt bonds with a maturity of 30 years in a competitive bid, will fund the construction of two buildings, one each for the neuroscience and psychology departments.
The University’s decision to increase capital spending is a recent development; Provost Christopher Eisgruber ’83 said in an email to The Daily Princetonian in October that the University’s improved financial condition would “not affect the University’s multi-year outlook” because the returns posted by the endowment over the past year had fallen within the “normal range.”
Still, the University’s endowment returns of 15 percent for fiscal year 2010 were among the highest of its peers and, in the Ivy League, came second only to Columbia’s 17 percent.
Princeton’s endowment was valued at $14.4 billion last June, coming in third in the Ivy League behind Harvard’s endowment of $27.4 billion and Yale’s $16.7 billion.
The University’s $1.75 billion Aspire fundraising campaign, which has also funded much of the capital spending in recent years, is expected to culminate in 2012. The campaign has raised $1.44 billion to date.
A number of other colleges around the country, including Williams College, have begun to reinstate capital spending projects that were postponed two years ago, as most endowments nationwide took substantial hits.
Read More
‘A brilliant young contemporary writer and a beautiful human being’: Remembering Lauren Blackburn ’26
Victoria Davies and Caitlyn TabladaBlackburn was found deceased by authorities on April 25, several days after he was reported missing. He was 23 years old at the time of his death and is remembered by friends and mentors as a brilliant writer, voracious learner, and loving friend. A family obituary said he passed away after a “courageous battle with bipolar disorder.”
Blackburn was found deceased by authorities on April 25, several days after he was reported missing. He was 23 years old at the time of his death and is remembered by friends and mentors as a brilliant writer, voracious learner, and loving friend. A family obituary said he passed away after a “courageous battle with bipolar disorder.”
GSG approves audit, delays budget approval after ‘insufferable’ meeting
Nikki HanThe final Graduate Student Government (GSG) meeting for the semester lasted more than an hour and a half when discussions over the proposed budget for the next year and a proposed Student Life Fee of $100 turned controversial.
The final Graduate Student Government (GSG) meeting for the semester lasted more than an hour and a half when discussions over the proposed budget for the next year and a proposed Student Life Fee of $100 turned controversial.
Effort to restore chapel’s pews slowly progresses
Ben GoldstonHead carpenter Jim Sullivan has been restoring the Chapel pews over the last year. The dry atmosphere of the Chapel has warped the wooden pews over the years.
Head carpenter Jim Sullivan has been restoring the Chapel pews over the last year. The dry atmosphere of the Chapel has warped the wooden pews over the years.