Pension Insurance Corporation (PIC) has agreed to a £60m, 50-year debt investment in The Mercers' Company, six years after buying out its staff pension fund.
The deal - which makes PIC sole investor of the company - was agreed to by both parties at the end of January, and completed last week.
The bond will fund refurbishments and additions to existing property, as well as support the company's philanthropic activities.
The insurer added the financing deal builds on an "existing relationship," following PIC's £35m buyout of the Mercers' Staff Pension Scheme in 2012.
It also said repayment will be sculpted to provide the company with a bespoke amortisation profile and PIC with very long-dated cashflows "beyond that typically available in the listed debt market".
The deal includes deferred drawdown - reducing the cost of carry for the borrower. Barclays acted as sole agent on the transaction.
The Mercers' Company clerk and chief executive office Rob Abernethy said: "This will enable the company to continue with its programme of developing its existing investment property portfolio, to increase long term returns and support its philanthropic activity across young people and education, older people and housing, and church and communities."
The insurer's debt origination manager Marno Jooste said: "It is great to be able to invest in an institution that has a track record of supporting charitable causes dating back to the 14th century.
"This investment strengthens our relationship with The Mercers' Company, helping the company to fund its corporate purpose more securely. It also has a certain symmetry, helping to secure both long-term payments to our pensioners and provide education for much younger generations."
The Mercers' Company originally traded in luxury fabrics such as silks, linens, velvets, and other fine textiles and dress accessories imported from abroad, but today concentrates on its philanthropic works. The company funds its activities from income derived from its investments, mainly property in London's West End and the City.
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