Pension Insurance Corporation invests further £30m in North East housing association

PIC said the maturity profile has been tailored to match pension liabilities in years where it is difficult to source cashflows in the public bond markets.

The insurance firm completed a similar deal in December 2020 for North Star Housing Group in which it provided £70m in spot funding and £10m in deferred funding to be drawn down in 2022.

Sean Brodie, executive director of finance and development at Livin, said: “We are delighted to have secured this additional long-term funding. The deferred element is particularly helpful as it provides us with certainty of future funding, at a known cost.

“PIC’s team were flexible in providing a funding structure that meets our needs and proactive in helping us complete the transaction during volatile markets and I’d like to thank them for their efforts.”

Eugenia Korobova, debt origination manager at PIC, said: “Sourcing secure, long-dated cash flows such as these is important to PIC as we focus on our purpose of paying long-term pension liabilities.

“This focus has important outcomes for society, including the provision of social housing, and securing more pension liabilities. This means that more trustees can guarantee their members’ pensions through insurance-based pension risk transfer, greatly improving their financial security in retirement.”