Pension Insurance Corporation has invested £93m in secured debt issued by the Welsh Housing Partnership, which was set up as a strategic initiative for delivering new affordable housing for four housing associations, supported by the Welsh Government.

As part of the investment, £10m of the loan has been deferred for four years. The debt matures in 2033, matching PIC’s cash flows. PIC has previously invested more than £600 million in social housing around the country.

The Welsh Housing Partnership comprises of Hendre, Pobl, Coastal Housing and Grwp Cynefin who are working together with the Welsh Government and lenders to deliver quality housing across Wales for affordable rent. The Partnership was launched in 2011 and now owns nearly 1,000 homes acquired over five phases of investment. Centrus Advisors, as adviser to WHP, structured this innovative refinancing and have worked closely throughout to help establish terms which meet both parties’ needs.

Welsh Housing Partnership chair Ian Williams said: “The Welsh Housing Partnership is an innovative solution to providing much needed housing across Wales. We are delighted to work with PIC on this funding package and appreciate their willingness to provide long-term funding for something which is not traditional social housing.”

Welsh Government’s Communities and Children’s Secretary Carl Sargeant added: “This funding package is good news for the Welsh Housing Partnership which is working to increase the provision of quality affordable homes in Wales. The Welsh Housing Partnership is an exciting venture and this investment from PIC will help the partnership increase the supply of quality affordable homes to families who cannot afford to buy their homes, and support our target of 20,000 affordable homes during this term of government.”

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