Pension Insurance Corporation (PIC) is investing £100m (€113.1m) with Accord Housing Association to help the UK housing association repay existing loans and fund new homes.

PIC, an insurer of defined benefit pension funds, said the long-dated, senior secured private placement with Accord has been secured on housing assets.

The money will be used to repay existing maturing loans and fund the future development of 1,500 homes over the next five years, PIC said.

Accord provides 13,000 affordable homes and a range of support and care services to over 80,000 people across central and northern England.

Stuart Fisher, the executive director of resources at Accord Housing Association, said: “We are delighted to have secured a £100m funding facility with a new investment partner PIC, an established and well-respected funder to the social housing sector.

“As part of our planned funding strategy, Accord has now raised £185m in the last two and half years and this new funding facility shall be used to support Accord’s growth and development ambitions to deliver much needed new homes.”

Marno Jooste, thye debt origination manager at PIC, said: “Sourcing long-dated cash flows is important to PIC as we look to back our long-term pension liabilities. Investing in social housing and other illiquid assets allows PIC to generate enhanced yield, helping us to secure more pension liabilities.

“This, in turn, means more trustees can guarantee their members’ pensions through buy-ins and buyouts, greatly improving their financial security in retirement.”