The Pensions Infrastructure Platform (PiP) has completed its first investment for the PiP Multi-Strategy Infrastructure Fund (MSIF).
The first investment is a £27.5m inflation-linked debt refinancing of a FiT (feed-in tariff) accredited UK rooftop solar assets portfolio.
The portfolio of 2366 rooftop solar assets are geographically distributed across England and Wales, with a total installed capacity of 6.71 MWp. The financing is repayable over 20 years benefitting from the UK's feed in tariff regime.
The investment meets all of the established PiP criteria: A UK asset, which can be owned for 20 years and provides a low risk, fully amortising, inflation-linked cash flow stream.
PiP chief executive Mike Weston (pictured) said development of the Pensions Infrastructure Platform has seen a marked acceleration in recent months.
"We have celebrated FCA authorisation, the launch of the Multi-Strategy Infrastructure Fund, subsequent first close, and now the fund's first deal - all since January this year."
He continued: "This first investment demonstrates that PiP can source and secure the low risk, long-term, inflation-linked cash flows that UK pension schemes need to help meet their pension payment obligations. This is real delivery on the ambition that led to the original establishment of PiP.
The PiP MSIF invests across the capital structure directly into UK infrastructure. It targets housing, social infrastructure such as hospitals and schools, communications, utilities, energy and transportation.
The fund is open to all UK pension schemes and has a low minimum investment hurdle to allow smaller schemes to participate and achieve similar scale benefits as larger schemes.
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
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