Pension Insurance Corporation (PIC) has invested a further £65m (€72m) in Welsh housing association Pobl.
The insurer of defined benefit pension funds, which made a £35m investment in Pobl in 2013, said it has agreed the additional investment by investing in debt issued by the Newport-based housing association. The debt is secured on social housing assets.
PIC said the funding will be used to support Pobl’s affordable housing development programme over the next two years as part of their aim to create 10,000 new homes over the next 10 years, as well as to refinance existing long-term debt.
Pobl is the largest housing association in Wales with over 17,000 homes under management located in and around South Wales.
Wayne Fox, director of corporate finance at Pobl, said: “We are delighted to have secured this funding which will help us achieve our ambition of creating 10,000 new homes for Wales over the next ten years.
“PIC is a valued partner following our initial transaction in 2013 and having the opportunity to work again with a team that has such a strong understanding of the social housing sector makes for an efficient and successful process. We valued PIC’s flexibility, including the ability to defer drawdown.”
Eugenia Korobova, debt origination manager at PIC, said: “It has been a pleasure to work with Pobl. The management has a clear strategy and rationale to make their plans achievable and we are happy to continue supporting them to help deliver more affordable housing in South Wales.
“In addition, we have been impressed by Pobl’s focus on the need to address ESG-related risks, and their plan to have very energy-efficient homes. This investment complements our portfolio providing low risk, long-term, secure cashflows that match our pension liabilities for decades into the future.”
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