Pension Insurance Corporation (PIC) has agreed to a 30 year debt investment in Phoenix Community Housing, a not-for-profit, resident-led housing association in London.
The deal - which makes PIC the sole investor of the company - was agreed to by both parties in February, and completed at the end of March.
The bond will fund the development of more than 200 new homes, and allow the refinancing of existing debt and removal of restrictive covenants.
According to the insurer, its maturity profile was tailored to match PIC's pension liabilities in "years where it is difficult to source cashflows in the public bond markets."
It also noted that the deal includes deferred drawdown to reduce the cost of carry for the borrower, and that the debt is secured on housing assets.
The transaction was arranged by Barclays as a sole agent.
PIC debt origination manager Marno Jooste said: "PIC continues to source long-dated, secure cashflows to back our pension liabilities and it has been a pleasure to deal with the team at Phoenix.
"We are proud to be able to help them develop their social housing stock, while at the same time securing the pensions of our policyholders."
Phoenix Community Housing owns and manages over 6,000 homes in the Lewisham wards of Bellingham, Whitefoot and Downham, and are now starting to build their first new homes.
Phoenix Community Housing finance director Chris Starke commented: "We are committed to delivering much needed new homes and working with our residents to enhance our local community area."
He added that the PIC team were "proactive in helping us achieve our aims, and flexible in discussions on deferred drawdown. We look forward to working with them as an investment partner."
The insurer also announced yesterday, that the King Fisher Pension Scheme has completed a buyout with the firm, covering around £200m of liabilities for 400 pensioner members.
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