PIC invests £40m in Royal College of Surgeons of England

Pension Insurance Corporation (PIC) has invested £40m in debt issued by the Royal College of Surgeons of England to finance the final stages of the redevelopment of its headquarters.

The redevelopment is of its flagship headquarters in Lincoln’s Inn Fields, London.

The transaction has an investment term of 30 years and PIC said the amortising debt profile is a “good match” for its future pension payments.

It was arranged by Lloyds Bank Corporate Markets and the redevelopment is due for completion in 2021.

“We are proud to be supporting the future of this important organisation with this £40m investment,” said PIC deputy head of debt origination, Elizabeth Cain. “We were attracted by the college’s strong governance model and by the social value of its work, with many future generations set to benefit from the college’s vision for its headquarters.

“As we increase the number of pension schemes we insure, 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.”

PIC stated that the investment will transform the grade II listed Barry Building into a “state-of-the-art” headquarters for training the next generation of surgeons.

Royal College of Surgeons of England president, Professor Neil Mortensen, added: “We are pleased to have secured this funding from PIC.

“It is the first time we have worked with an institutional investor and the PIC team showed great understanding and knowledge in structuring this investment to meet our needs. We would also like to thank our professional advisers, Mills & Reeve LLP and Lloyds Bank Corporate Markets, for assisting throughout this transaction.”

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