University of Virginia Library

University-issued vs. State-issued debt

In determining the most cost effective means of issuing debt, the University evaluates the merits of issuing debt directly vs. issuing debt through the State (e.g., under Article X, Section 9 of the State Constitution) or a State-issuing entity (e.g., The Virginia College Building Authority.)

On a regular basis, the University performs a cost-benefit analysis between these two options and takes into consideration the comparative funding costs, flexibility in market timing, and bond ratings of each alternative. The University also takes into consideration the future administrative flexibility of each issue such as the ability to call and/or refund issues at a later date, as well as the administrative flexibility to structure and manage the debt in a manner that the University believes to be appropriate.