Wellcome Trust prices 400 million euro bond

THIS ANNOUNCEMENT IS NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (OR TO U.S. PERSONS), AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW

The issue priced at a spread over mid swaps of 40 basis points. The final coupon of 1.125% is the lowest ever for a Aaa/AAA rated corporate in the euro bond market. It is also the lowest ever coupon in the euro bond market for a corporate issuance with a tenor of longer than ten years. The initial order book was seven and a half times over-subscribed.

The Wellcome Trust is a global charitable foundation, dedicated to achieving improvements in human and animal health. It holds a diversified investment portfolio valued in excess of £18 billion (net of bond liabilities) as of September 30, 2014, and spends approximately £700 million a year on its charitable activities.

Returns on the Trust’s investment portfolio have totalled 75 per cent over the last five years with a positive return in each of these years. For the year to September 2014, the portfolio delivered returns of 15 per cent, representing gains of £2.5 billion. This performance was made up of double-digit returns in each major asset class and represents the third successive year of double-digit portfolio performance. Returns have been 10 per cent annualised over ten and twenty years.

The Wellcome Trust is currently rated Aaa (stable) by Moody’s and AAA (stable) by Standard & Poor’s and it is its policy to maintain these ratings. The 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 and 2014.

Danny Truell, Chief Investment Officer of the Wellcome Trust, said: "These bonds represent our inaugural issuance in euros and we are delighted to be able to extend access to our strong balance sheet to a broader investor base. We believe we are the first independent charity to issue long-term euro debt and it is testament to the strength of our financial position that we have seen such strong demand for these bonds. We are grateful to the many institutions who intend to entrust us with their money. It has been our strategy to review market conditions regularly and to access the bond markets when circumstances are appropriate. We are pleased to be able to include the euro bond market in this ongoing assessment of opportunities for the Trust."

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 communication 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 EU Directive 2003/71/EC (as amended and including legislation implementing it in any relevant Member State, the "Prospectus Directive"). A prospectus will be prepared and published in accordance with the Prospectus Directive. 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 websites of the Irish Stock Exchange and the Central Bank of Ireland.

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 an offer to sell securities or the solicitation of any offer to subscribe or otherwise buy any securities. There will not be any sale of the Bonds in any such 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.