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Welsh housing association secures £65m debt funding
Pobl has received £65m in debt funding from specialist insurer the Pension Insurance Corporation (PIC) to help fund its development ambitions.
The funds will be used to support Pobl’s development programme over the next two years, as well as refinance existing long-term debt.
This is the second funding agreement between Pobl and PIC, following a £35m investment in 2013.
The £65m will be split into £15m spot funding which will mature in 2041 and £50m deferred funding to be drawn down in 2021 and mature in 2059.
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To date, PIC has invested over £2bn in the UK’s social housing sector, having previously signed agreements with landlords including Welsh Housing Partnership and Red Kite.
At 17,000-homes, Pobl is currently the largest housing association in Wales and has plans to develop 10,000 new homes over the next 10 years.
Wayne Fox, director of corporate finance at Pobl, said: “We are delighted to have secured this funding which will help us achieve our ambition of creating 10,000 new homes for Wales over the next 10 years.
“PIC is a valued partner following our initial transaction in 2013 and having the opportunity to work again with a team that has such a strong understanding of the social housing sector makes for an efficient and successful process. We valued PIC’s flexibility, including the ability to defer drawdown.”
Eugenia Korobova, debt origination manager at PIC, said: “It has been a pleasure to work with Pobl. The management has a clear strategy and rationale to make their plans achievable and we are happy to continue supporting them to help deliver more affordable housing in south Wales.
“In addition we have been impressed by Pobl’s focus on the need to address ESG [environmental, social and governance] related risks and their plan to have very energy efficient homes. This investment complements our portfolio providing low-risk, long-term, secure cashflows that match our pension liabilities for decades into the future.”
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