Pension Insurance Corporation (PIC) has announced a £160m debt investment into student accommodation for the University of York.

The senior secured bond will span 45 years, maturing in 2064, and has a "maturity tailored to a year when it is hard to find cashflows in the public debt markets".

The deal was wrapped by Assured Guaranty and sponsored by Equitix, with the overall investment having an S&P rating of AA.

PIC noted that the regular, secure and long-term cashflow will make a “good match” for its pension payment obligations.

The loan, which is inflation linked, is to be used to fund the construction of 1,500 en-suite rooms for students as part of a larger facility that will also provide study spaces, exhibition spaces and cafes.

Commenting on the deal, PIC debt origination manager, Florence Carasse, said: “We are delighted to have agreed this deal with the University of York, one of the top UK universities, which has demonstrated strong demand historically and will benefit from the expansion of its Campus East, to further improve student satisfaction.

“In addition, we are very happy to partner again with Equitix, the Sponsor, and Assured Guaranty, the financial guarantee provider with whom we have a strong relationship.

“Last but not least, this investment provides us with the characteristics we look for in our portfolio – indexed-linked, low risk, long-term, secure cashflows that are closely matched to our pension liabilities.”

PIC have also recently announced a £250m investment into London projects and a £195m investment into the Glasgow City Council.

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