Gaw Capital Partners and InvestUK launch education bond for Chinese students
Gaw Capital Partners and InvestUK have launched an education bond which will allow Chinese students to inject £1bn into the country and gain permanent residence.
The companies have signed a memorandum of understanding to launch the bond, at least half of which will be invested in high-yield real estate-backed debt, with the balance held in UK government bonds.
The funds raised with the education bond will be used to finance property projects in the UK, including affordable housing. The yield from these investments will fund bursaries to go towards the students’ tuition fees.
Gaw Capital Partners and InvestUK have launched an education bond which will allow Chinese students to inject £1bn into the country and gain permanent residence.
The companies have signed a memorandum of understanding to launch the bond, at least half of which will be invested in high-yield real estate-backed debt, with the balance held in UK government bonds.
The funds raised with the education bond will be used to finance property projects in the UK, including affordable housing. The yield from these investments will fund bursaries to go towards the students’ tuition fees.
Gaw Capital Partners and InvestUK will form an investment committee to oversee the debt investments.
Bondholders will be eligible to apply for permanent residence in the UK after a five-year term of the investment. The education bond has a minimum subscription price of £2m which would be invested after a tier one, investor, visa is granted.
Around 70,000 Chinese students attend UK schools and universities every year.
Christina Gaw, managing principal and head of capital markets, Gaw Capital Partners, said: “The combination of attractive yield, top-quality assets, coupled with attractive long-term debt, makes London a particularly compelling market for real estate investments.
“We intend to use our in-depth understanding of the UK real estate market based on our proven track record to safeguard the Bond investment.”
Rupert Gather, chairman of InvestUK, said: “This is exactly the kind of creative product that Britain’s migration advisory committee has been calling for.
“The education bond conforms with both the letter and spirit of the UK’s investment visa rules, while having a meaningful and measurable impact on Britain’s real economy.”
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