The University is going to the capital markets to help finance its largest capital expansion in more than 30 years.

The planned private bond issue, which could raise up to $120 million, will help to complete construction of new classrooms, labs and research space. These capital projects will help to ensure McMaster maintains its place as one of Canada's leading teaching and research universities.

The Board of Governors approved the financing strategy at its meeting today (June 13). The Board previously approved all of the projects that would benefit from the bond issue. These include expansion of the Health Sciences building, renovations to the Arthur Bourns Building, General Sciences, Hamilton Hall, and the School of Business, and construction of the parking structure.

“This form of financing is a prudent, carefully thought out undertaking that lets us maximize our flexibility in managing our financial position and continue to build on the University's strengths,” said Ed Minich, chair of the Board of Governors.

“It will also help ensure that we continue to provide the highest possible quality education for our students, research opportunities for faculty and a positive working environment for employees.”

Minich said the bond issue is a solid solution for the University's short-term funding needs but stressed that continued support from the provincial and federal governments and the private sector are critical to the University's future success.

Details of the capital financing strategy should be complete this fall.

In the past year, the University of Toronto, the University of British Columbia and York University have floated successful bond issues that raised more than $450 million.

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