PIC invests £195m in Glasgow City Council

Pension Insurance Corporation (PIC) has announced an investment of £195m of debt finance in City Property Glasgow Ltd, a subsidiary of the Glasgow City Council Group.

The 29-year repayment profile was highlighted as a “good match for PIC’s future pension payments”, with the debt itself to be used by the council to fund its equal pay settlement.

The debt has been guaranteed, throughout the life of the bonds, by Assured Guaranty and was secured on a portfolio of five “strategic city properties”.

These include the Royal Concert Hall, the Riverside Museum, and various sports and leisure facilities.

Commenting on the investment, PIC head of debt origination, Allen Twyning, said: “We are pleased to have completed this transaction which supports Glasgow City Council. It represents a good portfolio diversifier for PIC.

“With almost £7bn of insured pension scheme liabilities announced so far this year, PIC continues to look for secure, long-term cashflows to back our pension payments.

"These investments are a good fit for our long-term liabilities and at the same time have a wider benefit for society.”

As of the half year 2019, PIC had £39.6 billion in financial investments, accumulated through the provision of pension insurance buyouts and buy-ins to the trustees and sponsors of UK.

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