M&G Investments is lending £45m (€54.2m) to UK housing association Link Group.

The long-term loan will be used by the Edinburgh-based association to refinance debt and develop new homes. The facility will run for 31 years on a fixed-rate basis.

M&G is the first long-term institutional investor to make a bilateral investment in a Scottish housing association. The firm has now invested more than £4bn in UK social housing through property, public bonds and private placements.

In 2011, the investment manager launched social housing debt fund with backing from UK pension funds.

Last month, M&G Investments said it had raised £1.35bn for its commercial mortgage funds, with capital committed by more than 40 institutional investors from Europe and the US.