De Montfort University (DMU) has raised £110 million from the bond markets.
The Midlands university says it will use £90 million of the 30-year bond to improve its campus.
The university said it was considering using the money to fund a number of potential projects, including new sports fields for all students’ teams, a new art and design building, and improved catering facilities around the campus.
The remaining £20 million will be held in reserve to accumulate interest.
Dominic Shellard, vice-chancellor of DMU, said: “The recent change to the way universities are funded, combined with the cuts in spending by the government, means that we have to find new ways to continue to improve our offer to students.
“We know that a large number of universities are looking for ways to raise funds – DMU is at the vanguard in this respect and we understand other universities are exploring similar funding opportunities.”
Leading rating agency Moody’s has rated the university’s bond as Aa1. Moody’s said the rating was based on a “very high likelihood of extraordinary support from the UK government in the unlikely event of DMU experiencing acute liquidity stress".