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The Pension Insurance Corporation (PIC), which insures pension funds, has lent £100m to EMH Group.
EMH borrowed the money as a long-term private placement, split into three tranches maturing in 2052, 2054 and 2059.
This structure, PIC said, was intended to give “certainty of funding cost for the borrower” but also to match PIC’s pension liabilities “in years where it is difficult to source cash flows in the public bond markets”.
EMH, which owns 20,000 homes across the East Midlands region, has an A+ credit rating from agency Standard & Poor’s.
Andrew Kilby, executive director of finance at EMH Group, said: “We are delighted to have partnered with PIC to secure a large part of the financial requirements of our five-year development plan. PIC’s expertise in structuring the funding arrangement has allowed us to closely manage our costs.
“This funding enables us to provide hundreds of people with the security that comes with having a roof over their heads. I would like to thank the PIC team for being flexible and proactive partners in this transaction.”
This is the second deal PIC has struck with the UK social housing sector in a week, after it lent £40m to Eildon, a Scottish housing association. PIC has invested a total of more than £1.5bn in the social housing sector.
Marno Jooste, debt origination manager at PIC, said: “It has been a pleasure to work with such a knowledgeable and pragmatic team.
“Right from the start, EMH Group impressed us with its long-term view and strategic approach to providing much-needed social housing. We are delighted to support them in their housing ambition for the East Midlands region.”