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The Pension Insurance Corporation (PIC) has completed debt investment totalling £37.5m in Wales & West Housing.
The specialist insurer of defined benefit pension funds has now invested more than £200m in the Welsh social housing sector with previous funding going to Pobl and the Welsh Housing Partnership.
Cardiff-based Wales & West Housing, which manages 12,000 homes, said the funding will be used to support the development of 2,500 new homes in the next five years.
The funding will be split into three tranches with drawdowns in 2021 and 2022, with the entire amount maturing in 2060. PIC did not share the rate on the transaction when asked by Inside Housing.
PIC, which has £49.6bn in financial investments, said the maturity profile has been tailored to match its pension liabilities in years where it is difficult to source cashflows in the public bond markets.
Stuart Epps, executive director of resources at Wales & West, said: “We are delighted to have secured this funding, which is the latest step towards our ambitious plan to build 2,500 homes in the next five years in support of the Welsh government’s plan for delivering 20,000 new affordable homes during the current term.”
Eugenia Korobova, debt origination manager at PIC, said: “We are very happy to have invested in Wales & West, a dynamic social housing provider.
“Sourcing long-dated, secure cashflows is important to PIC. The investment backs our long-term pension liabilities, while having the beneficial outcome of putting PIC’s capital to use in parts of the economy where funds are vitally needed.”
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