Assured Guaranty (Europe) announced that it has guaranteed principal and interest payments on GBP 124 million (US$ 150.84 million) of bonds issued by Freemens Common Village LLP. The bond issuance will finance the construction of new student accommodation at the University of Leicester (the University). As a result of the guarantee from AGE, the bonds are rated AA by S&P Global Ratings. The underlying project is rated BBB-.

The 45-year inflation-linked bond, which reached financial close on August 2, 2019, took advantage of low long-term rates and was issued as a private placement to UK investors.

The bonds will finance a total of 1,164 new bed spaces for university students, a multi-story car park and new teaching facilities. The halls are located on campus and are designed to house both undergraduate and postgraduate students in a wide mix of room types including en-suites, studios, micro rooms, and townhouse units.

Engie Regeneration Limited (Engie) will build and maintain the halls through wholly-owned subsidiaries, delivering the accommodation in two phases over three years. Equitix is the main sponsor of the project company, with Engie as a co-sponsor. The University has a 10% stake in the project company.

AGE guarantees timely payment of scheduled principal and interest to bondholders throughout the life of the bonds, in accordance with the terms of its financial guarantees. AGE was advised on the transaction by Ashurst (legal adviser), MAMG (technical adviser), CBRE (demand adviser) and Marsh (insurance adviser). Lloyds acted as sole bond manager.