The Pension Insurance Corporation (PIC) has invested £60m into Phoenix Community Housing, funding the development of 200 new homes.

PIC said the debt investment’s maturity profile matched the firm’s pensions liabilities in “years where it is difficult to source cash flows in the public bond markets”.

As well as funding the new homes, the bond will allow the refinancing of existing debt and the removal of restricting covenants.

PIC debt origination manager, Marno Jooste, said: “PIC continues to source long-dated, secure cash flows to back our pension liabilities and it has been a pleasure to deal with the team at Phoenix. We are proud to be able to help them develop their social housing stock, whilst at the same time securing the pensions of our policyholders.”

Furthermore, the transaction was made using deferred drawdown, reducing the cost of carry for the borrower.

Phoenix Community Housing finance director, Chris Starke, added: “We are committed to delivering much needed new homes and working with our residents to enhance our local community area. The PIC team were proactive in helping us achieve our aims, and flexible in discussions on deferred drawdown. We look forward to working with them as an investment partner.”

The deal comes a day after PIC confirmed it had completed a £200m buy-in with Kingfisher Pension Scheme.

Share Story: