Debt Financing & Rates

At Harvard University, debt is issued centrally through the Central Bank for use by Individual schools and units. Debt activities and policies are overseen by the OTM Debt/Asset Management group on behalf of the President and Fellows.

Rates

The University's Central Bank provides debt financing for capital projects throughout Harvard.

The Central Bank offers several interest rates to internal borrowers for their capital projects.

CIP Rate: This rate applies during the construction-in-progress (CIP) period for projects that request debt financing. At project completion, a long-term loan is initiated at the blended debt rate. The CIP rate is updated monthly. View the CIP Rate.

Blended Debt Rate: This rate applies applies to loans for projects that have been placed in service and to CIP accounts that are underfunded (except those that request debt-financing). It is set annually by the University based on the weighted average interest rate of the University's external debt portfolio (the consolidated University’s cost of borrowing is passed through to schools and units).

T-bill Rates: Historical 90-day treasury bill rates

Current rates can be found in the Annual Budget Letter (login required). Please contact the Office of Financial Strategy and Planning to gain access to the Budget Letter.

Loan Application

All loan applications are processed through the CAPS system. Treasury approves debt financing and determines the appropriate source of funding. Debt-specific questions about the CAPS forms should be addressed to Treasury. Specific questions about the CAPS form should be directed to the CAPS office (capsform@camail.harvard.edu).

Calculating a Loan Term: When requesting a loan term for a componentized building, tubs should ensure that the loan term does not exceed the weighted average useful life of all components in the project, especially as related to lab projects. Click here for a template to calculate the recommended loan term for your project. For more information, see the Fixed Asset Policy.