PIC invests a further £40 million in soha housing as part of a long-term relationship

29 October 2019

Pension Insurance Corporation publishes on its website:

“Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has completed a second £40 million long-dated, senior secured private debt investment with Soha Housing, a regulated housing association based in South Oxfordshire. The investment follows an initial £40 million private placement completed in 2018 and will see the housing association build 250 homes per year as part of its development programme. The investments demonstrate an increasing trend within the social housing sector of building long-term relationships with institutional investors.

Key aspects of the transaction:

  • Funding will be used to support Soha’s development programme of 250 new homes per year
  • £40 million long-dated funding, maturing in 2051
  • Maturity tailored to match PIC’s pension liabilities in years where it is difficult to source cashflows in the public bond markets
  • Draw down is fully deferred until 2021, allowing the borrower to have certainty of funding whilst reducing the cost of carry

Soha Housing is an award winning, community-based mutualised housing association working in and around Oxfordshire. It provides almost 7,000 homes for affordable rent and shared ownership for people who prefer to rent or who can’t afford to rent or buy in the private sector. Any surplus it makes is reinvested to develop new homes and look after local neighbourhoods.

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