PIC invests £250m in London projects

Pensions Insurance Corporation (PIC) has invested £250m in debt issued by the City of London Corporation for a programme of projects in the Greater London area.

The specialist insurer of defined benefit pension schemes is investing in the proposed relocation of three of London’s historical wholesale food markets - Billingsgate, Smithfield and New Spitalfields – to a former power station site in Barking and Dagenham.

It would also help fund the Museum of London’s relocation of the Museum of London’s relocation to West Smithfield.

The investment transaction totaled £450m, with PIC being awarded the largest share.
The proceeds will refinance a £125m bridge loan used to acquire the Barking site, as well as preparing the site for development.

PIC’s investment will not be drawn down by the City of London Corporation until 2021, with the transaction being jointly arranged by Lloyds Banka and Santander.

Commenting, Lloyds Bank director, private placements, Stephen Valvona, said: “This is an important financing which demonstrates strong investor interest and confidence in the City of London.

“The transaction reflects the flexibility of the private placement market, enabling the City of London to achieve a broad spread of maturities from 25-45 years, attract a mix of delays to funding to suit their requirements, and secure favourable long-term pricing.”

PIC head of debt origination, Allen Twyning, added: “We are proud to be supporting the future of these impressive institutions with this significant investment.

“It has been a pleasure working with the Corporation, who have been clear in what they are trying to achieve from the outset.

“This type of long-dated investment provides a good match for PIC’s long-term liabilities with a tailored maturity profile.”

    Share Story:

Recent Stories


A changing DC market
In our latest Pensions Age video interview, Aon DC senior partner and head of DC consulting, Ben Roe, speaks to Laura Blows about the latest changes and challenges within the DC sector

Being retirement ready
Gavin Lewis, Head of UK and Ireland Institutional at BlackRock, talks to Francesca Fabrizi about the BlackRock 2024 UK Read on Retirement report, 'Ready or not. How are we feeling about retirement?’

Podcast: Who matters most in pensions?
In the latest Pensions Age podcast, Francesca Fabrizi speaks to Capita Pension Solutions global practice leader & chief revenue officer, Stuart Heatley, about who matters most in pensions and how to best meet their needs
Podcast: A look at asset-backed securities
Royal London Asset Management head of ABS, Jeremy Deacon, chats about asset-backed securities (ABS) in our latest Pensions Age podcast

Advertisement Advertisement