The University operates two campuses, in Santiago and Temuco. It has approximately 9,300 students, 1000 professors, and offers 31 undergraduate degrees and 25 graduate programs (master’s degree, post-graduate degree, executive programs and diplomas) within 8 faculties. In addition, it conducts research in multiple areas funded, in part, by top international granting agencies (e.g. Ford Foundation, Fulbright Commission, UNESCO, etc.) The university interacts with over 80 foreign universities through agreements and has received more than 200 foreign students. The project consists of the construction and refurbishment of campus buildings. UDP will follow new building regulations being proposed by the Municipality to help preserve the district’s heritage and traditional architecture. UDP’s aim is to create a fully integrated “urban campus” that will link and standardize its faculty buildings. The project includes the construction of three new university buildings and the refurbishment/expansion of six existing sites. It will cover approximately 50,000 sq.m. (including new construction and refurbishment). Implementation is planned to begin in April 2003 and last approximately 20 months. According to the same objectives, UDP is actively participating in a public-private partnership called “BUS” (Barrio Universitario de Santiago, Santiago’s University District) that intends to refurbish public space, squares, pedestrian walks, in order to improve the living standards in this area. The main partners (UDP, the Municipality and several educational institutions as universities, schools and technical institutes located in the area) have signed an agreement that defines the priorities and establishes an image of what the district should be in the next years. One of the university’s defining characteristics is its pluralism and commitment to the exchange of ideas from all parts of society. The project will help foster links with the neighborhood (through a common auditorium, library, and cafeteria open to the public). Also, the bond issuance itself is an important signal to the market of UDP’s progressiveness and outwardness. Both the project and the bond will solidify UDP’s brand and better position vis-a-vis competition. Also, the additional space will allow UDP to increase its student enrollment proportionately with the Ministry of Educations projections for the increase in demand for higher education over the next decade. IFC will be assisting a successful private university to innovatively raise capital for its diversification and expansion through a local bond issue. It will build the university’s investor base. This structuring is the first for a higher education project undertaken by IFC and the first of its kind in Latin America region. Also, it is expected to be among the first future cash flow securitizations in Chile. It can provide a demonstration model for replication elsewhere. IFC’s credit enhancement will be essential for the bond to reach the AA- rating needed to attract institutional investors and, in turn, will allow local institutional investors to diversify their investment holdings into an as of yet untapped sector.