Pensions Insurance Corporation (PIC) has invested £195m of debt finance in Glasgow City Council Group subsidiary, City Property Glasgow.
The insurer said proceeds will be used by the council to help fund its equal pay settlement, adding that its 29-year amortising debt profile is "a good match for PIC's future pension payments".
The debt will be secured on a portfolio of five strategic city properties, which include the Royal Concert Hall, the Riverside Museum and various sport and leisure facilities.
PIC head of debt origination Allen Twyning said: "We are pleased to have completed this transaction which supports Glasgow City Council. It represents a good portfolio diversifier for PIC. With almost seven billion of insured pension scheme liabilities announced so far this year, PIC continues to look for secure, long-term cashflows to back our pension payments.
"These investments are a good fit for our long-term liabilities and at the same time have a wider benefit for society."
According to PIC, the debt has been guaranteed by Assured Guaranty, throughout the life of the bonds.
City Property managing director Pauline Barclay commented: "We are pleased to have been able to complete this transaction with PIC, an increasingly important lender in the private debt space. The PIC team have been flexible and proactive in helping us achieve our aims."
Today's announcement follows a number of investments by PIC in the social housing market, including a £40m investment in the South Oxfordshire-based housing association in October, a £65m allocation to Livin Housing in April, and in July a £40m investment in debt issued by Scottish Borders-based Eildon Housing Association.
This also comes alongside various bulk annuity transactions agreed with the insurer. Most recently it agreed a £750m bulk annuity transaction, converting a pensioner longevity swap held by the Scottish Hydro Electric Pension Scheme into a buy-in.
BlackRock has been appointed as the fiduciary manager for the UK Power Networks Group of the Electricity Supply Pension Scheme (ESPS).
Trustees need to increase their focus on investments and demand more from their advisers, argues Donny Hay.
RPMI Railpen has made a direct investment into an Ayrshire-based windfarm currently under construction.
Return-driven investment strategies can deliver a better match for scheme-specific return targets via a more diversified and liquid portfolio, argues Gavin Orpin.
QMA’s Global Multi-Asset Solutions Group shares their ten-year capital market assumptions for the fourth quarter of 2019.