Pension Insurance Corporation (PIC) has invested £195m (€229m) of debt finance in City Property Glasgow, a subsidiary of the Glasgow City Council Group.

PIC, an insurer of defined benefit pension funds, said it has offered the loan to help the council fund its equal pay settlement.

The debt will be secured on a portfolio of five strategic city properties, including the Royal Concert Hall, the Riverside Museum and various sports and leisure facilities. The debt has also been guaranteed by Assured Guaranty, throughout the life of the bonds.

Pauline Barclay, managing director of City Property, said: “We are pleased to have been able to complete this transaction with PIC, an increasingly important lender in the private debt space.

The PIC team have been flexible and proactive in helping us achieve our aims.”

Allen Twyning, head of debt origination at PIC, said the deal represents a good portfolio diversifier for PIC.

“With almost seven billion 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.”