The Wellcome Trust, the UK’s largest charitable foundation and one of the world’s largest funders of medical research announces that it has successfully launched and priced £750 million of Bonds due 2071 (the “Bonds”).
BofA Securities, Goldman Sachs International and J.P. Morgan acted as joint lead managers in respect of the issue of the Bonds. The Wellcome Trust was advised by CMS and the joint lead managers were advised by Linklaters.
The issue of the Bonds priced at a spread over the 1.625% October 2071 Gilt of 55 basis points, representing a final coupon of 1.50% per cent, which is the lowest coupon for a Sterling corporate bond with a tenor of fifty years.
The Wellcome Trust is a global charitable foundation, which supports science to solve the urgent health challenges facing everyone. Its charitable activities of over £1 billion a year are funded from a diversified investment portfolio valued in excess of £29 billion as of 30 September 2020 (net of liabilities).
The Wellcome Trust’s investment portfolio has delivered a real return of 189 per cent in Sterling over the last ten years. For the financial year ended 30 September 2020, the portfolio delivered returns of 12.3 per cent in Sterling. This performance was made up of positive returns in each major asset class. Real Sterling returns have been 10 per cent annualised over ten years.
The Wellcome Trust is rated Aaa (stable) by Moody’s and AAA (stable) by Standard & Poor’s and it is its policy to maintain those credit ratings. The Wellcome Trust initially issued bonds in Sterling in 2006, when it was the first UK charity to do so. Successive Sterling bonds were issued in 2009, 2014 and 2018, and a Euro denominated bond in 2015.
Nick Moakes, Chief Investment Officer of the Wellcome Trust, said:
“The Covid-19 pandemic has underlined the importance of Wellcome’s work, which is exclusively funded from our investment portfolio. This issue of 50-year Sterling debt will strengthen our financial position and will help us support discovery research in health science and address the worldwide challenges of mental ill health, infectious disease and climate change and health. We are grateful to the institutions that have supported this bond and entrusted us with their money over such an extended period.”
Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or in the UK. This announcement does not constitute an offer or invitation to subscribe for or purchase the Bonds and nothing herein shall form the basis of any contract or commitment whatsoever.
This announcement is addressed only to specific individuals who are individuals (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) and qualified investors falling within Article 49(2)(a) to (d) of the Order and (ii) to whom it may otherwise lawfully be communicated under the Order (all such persons together being referred to as the “relevant persons”). This announcement must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons. By reading this announcement, the reader acknowledges that it is a person either (i) outside the United Kingdom or (ii) falling within one of the foregoing categories.
This announcement is an advertisement and is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation”). A prospectus will be prepared and made available to the public as required and in accordance with the Prospectus Regulation. Investors should not subscribe for any Bonds referred to in this announcement except on the basis of information contained in such prospectus. The prospectus, when published, will be available on the website of Euronext Dublin at https://live.euronext.com.
This announcement and the offering when made are only addressed to, and directed in member states of the EEA or the UK at persons who are “qualified investors” within the meaning of Article 2(e) of the Prospectus Regulation. For these purposes, the expression "Prospectus Regulation" means either Regulation (EU) 2017/1129 or Regulation (EU) 2017/1129 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as appropriate.
THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO OR FOR THE ACCOUNT OF U.S. PERSONS (EACH AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) (“REGULATION S”)). THE BONDS HAVE NOT BEEN AND WILL NOT BE REGISTERED IN THE UNITED STATES UNDER THE SECURITIES ACT, AND MAY NOT BE OFFERED, SOLD OR DELIVERED IN THE UNITED STATES (AS SUCH TERM IS DEFINED IN REGULATION S) OR TO OR FOR THE ACCOUNT OF U.S. PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S) UNLESS THE BONDS ARE REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE.
This announcement does not constitute or form part of an offer to sell securities or the solicitation of an offer to subscribe or otherwise buy any securities. There will not be any sale of the Bonds in any state or country in which such offer, solicitation or sale would be unlawful.
Stabilisation in respect of the Bonds may be conducted in accordance with FCA and ICMA Rules.