Pension Insurance Corporation (PIC) has invested £93m in secured debt issued by Welsh Housing Partnership, an initiative that supplies new affordable housing across Wales.
It is the latest social housing investment for PIC, which already has allocated over £600m in the asset class across the UK.
The government-backed partnership comprises of for four housing associations - Hendre, Pobl, Coastal Housing and Grwp Cynefin - and owns almost 1,000 homes since being launched in 2011.
Some £10m of the loan has been deferred for four years, with the debt maturing in 2033.
PIC's head of debt origination Allen Twyning said: "We are delighted to have been able to help the Welsh Housing Partnership achieve their funding aims with the aim of delivering affordable housing. PIC is a strong supporter of the social housing sector and we have invested a considerable amount in some of the main housing associations, with the intention of investing much more."
Welsh Housing Partnership chairman Ian Williams said: "We are delighted to work with PIC on this funding package and appreciate their willingness to provide long-term funding for something which is not traditional social housing."
The Welsh government's communities and children's secretary Carl Sargeant said PIC's investment would help the partnership increase the supply of quality affordable houses, and support its target of providing 20,000 such homes during the current government term.
The refinancing deal was advised on and structured by Centrus Advisors, to help establish terms which meet the needs of both parties. Its director Jonathan Clarke called the transaction an "innovative packaging up of risks" to meet both parties' requirements, adding: "The structure is based around the underlying credit strength of the housing associations but without overly disturbing their existing financing arrangements."
Housing associations add around £13.9bn to the economy every year and do better than private development during financial crashes, according to recent research by PIC.
It also said the long-term nature of housing associations means they can offer pension schemes high quality secure debt at attractive rates during the low yield environment.
However, it did point out that even although the sector is well-regulated, schemes need to put in time and effort to understand what they are investing in.
Ross Trustees has secured investment backing from private equity investor LDC, as it prepares to capitalise on growing demand for professional trustee services.
Lee Sanders says the fast and adaptive market response to the crisis of 2020 has shown how much the financial system has improved upon the credit market liquidity issues that were at the heart of the 2008 global financial crisis (GFC).
The stabilisation of US economic growth amid unprecedented fiscal and monetary stimulus has raised questions about the likelihood of inflation returning. Global Head of Fixed Income, Jim Cielinski, and Global Bonds Portfolio Manager, Andy Mulliner, explain...