Pension Insurance Corporation (PIC) has invested £40m into debt issued by Greatwell Homes, helping to develop 600 new homes in Northamptonshire, it has revealed.

The investment, split across four tranches maturing in 2053, 2057 and two in 2058, provides certainty for the borrower with a drawdown deferred for up to three years.

The insurer has invested almost £1.5bn into social housing as it continues to favour the strategy, while the maturity profile has been tailored to match its pension liabilities in years “where it is difficult to source cashflows” in the public bond markets.

PIC debt origination manager, Marno Jooste, commented: “We are very pleased to have achieved a great outcome for the team at Greatwell Homes and to support a housing association that generates about 90 per cent of its income from social housing lettings.”

The housing association, which manages more than 4,500 housing units across the county, was advised by TradeRisk.

Greatwell Homes director of resources, Julie Robinson, said: “We are very pleased to have completed on this transaction and because of the deferred structure, we have certainty that future funding will be delivered to us at a known cost.

“We can now confidently embark on delivering our new corporate plan development aspirations for 2019 - 2022 to build much needed new homes in and around Northamptonshire.”

Last week, PIC said it invested £65m into Livin Housing Limited, based in Durham.

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