Pension Insurance Corporation (PIC) has made its single largest investment in the university sector with a £145m (€161.4m) investment in debt issued by Durham University.

PIC, an insurer of defined benefit pension funds, said will offer long-dated funding with £70m maturing in 2058 and £75m maturing in 2067, to match PIC’s pension payments.

With the backing from PIC and five unnamed North American institutional investors, Durham said it raised £225m in total.

These funds will be used to support the delivery of the University’s strategy, which includes developing new buildings and refurbishing existing University buildings.

Professor Stuart Corbridge, the vice-chancellor of Durham University, said: “The PIC team has a very good understanding of the needs of universities as a result of their extensive experience of investing in this sector and were flexible and responsive in helping us achieve our aims.

“Durham University is performing extremely well and will now further enhance its position as the number one UK university combining excellence in research, education and the wider student experience.”

Elizabeth Cain, a senior debt origination manager at PIC, said: “The private nature of the transaction means we were able to develop a maturity profile which works for both institutions.

”This is our single largest investment in the university sector and its very long-term maturity date reflects the strength of the university, a high-quality institution with an outstanding reputation, as well as the long-term nature of our business.”

PIC has now invested more than £500m in the UK’s universities.