Pension Insurance Corporation (PIC) has invested £150m (€169m) in debt issued by Heathrow Airport’s fundraising arm.
As part of the deal, Heathrow Funding will draw down the debt finance in 2020, using the proceeds to refinance a tranche of its Class B debt, which matures in March of that year.
Marno Jooste, the debt origination manager at PIC, said: “We are pleased to have engaged with Heathrow, which is very active in the debt capital markets, and to work with them to execute a transaction which meets the needs of both parties.
“We are currently working with a number of other borrowers to meet the increasing demand for innovative, long-dated funding with bespoke characteristics.”
As at the end of last year, PIC, an insurer of defined benefit pension funds, had £25.7bn in financial investments.
Sally Ding, the director of treasury and corporate finance at Heathrow Airport, said: “We are very happy to have been able to complete this transaction with PIC, a lender with a growing reputation for structuring innovative deals that meet specific requirements.”
Heathrow is a significant issuer in debt markets, as it raises funds for both the refinancing of existing debt and for continued investment in the facilities at the airport.
Heathrow Airport is owned by FGP Topco, a consortium owned and led by the infrastructure specialist Ferrovial SA, Qatar Investment Authority, Caisse de dépôt et placement du Québec, GIC, Alinda Capital Partners, China Investment Corporation and Universities Superannuation Scheme.