Pension Insurance Corporation (PIC) has expanded its UK social housing sector investment with a £40m (€44.5m) investment in Eildon Housing Association.
PIC, an insurer of defined benefit pension funds, said it has invested the amount in debt issued by Eildon, to help support by the Scottish housing association’s development plan, under which they are building 750 new homes by 2021.
The transaction, which was arranged by Santander Corporate & Investment Banking, is the first private placement PIC has done with a Scottish housing association.
To date, PIC has invested over £1.5bn in the UK’s social housing sector.
Nile Istephan, CEO at Eildon Housing Association, said: “These funds are crucial as we seek to build 750 new homes. I want to thank the PIC team for their flexibility and proactive approach in helping close this deal.”
Liz Cain, senior debt origination manager at PIC, said: “This is our first private placement investment with a Scottish housing association and we are very pleased to have worked with the team at Eildon to complete it.
“We were impressed with their strategic focus, standards of governance and long term approach.”
Tony Fordham, head of private placements at Santander, said: “We are very pleased to have facilitated a competitive private placement process, enabling Eildon to raise £40m from PIC, so they can continue with their programme of building affordable housing across the Scottish Borders.
”Investors were attracted to Eildon’s very sound financial performance and strong management team.”