The Wellcome Trust Prices GBP275 million Bond

 

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RNS Number : 5959S 
Wellcome Trust Finance plc 
20 May 2009 
 

PRESS RELEASE NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE 
UNITED STATES OR TO UNITED STATES PERSONS 
 
 
The Wellcome Trust Prices GBP275 million Bond 
 
 
LONDON, 20 May 2009 - The Wellcome Trust, the UK's largest and the world's 
second largest charitable foundation funding biomedical research, today 
announces that it has priced GBP275 million of Guaranteed Bonds due 2021 ("the 
"Bonds"). Barclay's Capital, JP Morgan Cazenove and Morgan Stanley acted as 
joint bookrunners and joint lead managers of the issue. 
 
 
The issue priced at a spread over gilts of 115 basis points, the tightest 
corporate spread in Sterling bond markets for comparable tenor issues, since 
December 2007. The initial order book was more than three and a half times 
over-subscribed. 
 
 
The Wellcome Trust has over 20 years experience of managing a highly diversified 
investment portfolio, valued at GBP12.2 billion at 31st March 2009, and 
continues to maintain a conservative approach to risk. In the 20 years since the 
portfolio's inception, it has delivered a 14% net annualised return. In 2007, 
the Wellcome Trust was assigned Aaa (stable) / AAA (stable) ratings from Moody's 
and Standard & Poor's, respectively. 
 
 
Mr Danny Truell, Chief Investment Officer of the Wellcome Trust, said: 
 
 
"We are delighted at the continued strong investor interest in the Trust and the 
strength of its portfolio.  It has been our widely publicised strategy to review 
regularly market conditions and correspondingly, on occasion, to access the bond 
markets when circumstances are appropriate.  We remain as committed as ever, to 
our Aaa / AAA ratings from the agencies, and it is testament to the strength of 
our financial position that we have seen such strong demand for this bond." 
 
 
The issuing entity for the Bonds will be Wellcome Trust Finance plc, a special 
purpose vehicle incorporated in England and Wales, and the Bonds will be 
unconditionally and irrevocably guaranteed pursuant to the terms of a guarantee 
given by the Wellcome Trust. The Bonds will be offered to investors outside the 
United States in accordance with Regulation S under the U.S. Securities Act of 
1933, as amended. 
 
 
 
 
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| Wellcome Trust                             | [phone] /  | 
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| Katrina Nevin-Ridley                       |                     | 
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| Head of Media                              |                     | 
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|                                            |                     | 
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| Brunswick Group LLP                        | [phone]    | 
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| Nigel Prideaux                             |                     | 
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| Justine McIlroy                            |                     | 
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About the Wellcome Trust 
The Wellcome Trust is the largest charity in the UK. It funds innovative 
biomedical research, in the UK and internationally, spending over GBP600 million 
each year to support the brightest scientists with the best ideas. The Wellcome 
Trust supports public debate about biomedical research and its impact on health 
and wellbeing. http://www.wellcome.ac.uk 
 
 
In connection with this issue of the Bonds, Barclays Bank PLC (the "Stabilising 
Manager") or any person acting on its behalf may over allot Bonds (provided that 
the aggregate principal amount of the Bonds allotted does not exceed 105 per 
cent. of the aggregate principal amount of the Bonds) or effect transactions 
with a view to supporting the market price of the Bonds at a level higher than 
that which might otherwise prevail. However, there is no assurance that the 
Stabilising Manager (or any person acting on its behalf) will undertake 
stabilisation action. Any stabilisation action may begin on or after the date on 
which adequate public disclosure of the terms of the offer of the Bonds is made 
and, if begun, may be ended at any time but, it must end no later than the 
earlier of 30 days after the issue of the Bonds and 60 days after the date of 
the allotment of the Bonds. Such stabilisation shall be in accordance with all 
applicable laws, regulations and rules. 
These materials do not constitute an offer of any securities for sale in the 
United States, nor may the securities be offered or sold in the United States 
absent registration or an exemption from registration as provided in the U.S. 
Securities Act of 1933, as amended, and the rules and regulations thereunder. No 
securities are being registered for offer or sale in the United States and no 
public offering of the securities in the United States will be made. 
In the United Kingdom, this announcement is exempt from the general restriction 
(in section 21 of the Financial Services and Markets Act 2000) on the 
communication of invitations or inducements to engage in investment activity and 
is only directed at the following persons: (1)persons outside the United Kingdom 
in accordance with Article 12 of the Financial Services and Markets Act 2000 
(Financial Promotion) Order 2005 (the "FPO"); (2) persons falling within Article 
19(5) ("Investment professionals") of the FPO; and (3) persons falling within 
Article 49(2)(a)-(d) ("High net worth companies, unincorporated associations 
etc.") of the FPO (all such persons referred to as "Relevant Persons"). Persons 
who are not Relevant Persons must not rely on this communication. Any 
investments or investment services referred to in this announcement will only be 
made available to Relevant Persons. 
 
 
This Press Release is an advertisement and is not a Prospectus for the purposes 
of EU Directive 2003/71/EC (the "Prospectus Directive") and/or Part VI of the 
Financial Services and Markets Act 2000. A final form Prospectus will be 
prepared and made available in accordance with the Prospectus Directive. 
Investors should not subscribe for the Bonds referred to in this Press Release 
other than on the basis of information contained in the final form Prospectus. 
The final form Prospectus, when published, will be available on the website of 
the London Stock Exchange 
www.londonstockexchange.com/en-gb/pricesnews/marketnews/ . 
 
 
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