Aviva Investors, the global asset management business of Aviva, has inked a £60 mln (€66 mln) private corporate debt facility with Coastal Housing Group, a not-for-profit housing association with 6,000 homes under management across South Wales.
The agreement was made on behalf of the Aviva UK Life annuity business.
Munawer Shafi, head of structured and private debt at Aviva Investors, said: 'This transaction demonstrates our ability to structure bespoke funding solutions, aligned to counterparty businesses and investors’ needs.
'The counter-cyclical nature of social housing, coupled with high relative value and a strong regulatory underpinning, make it an attractive sector in the current environment. This deal fits well with our strategy of investing in long-dated predictable cashflows, which aim to offer attractive risk adjusted returns to our investors.'
According to Aviva, Coastal will use the proceeds from the financing, the largest it has undertaken to date, to secure its long-term business plans by expanding its operations and delivering additional housing across a range of tenures.
Ashish Dafria, chief investment officer, Aviva UK Life, said: 'As a business with a significant focus on ESG, we are particularly keen to pair our investment needs with projects that demonstrate social and environmental benefits.
'The social housing sector has become increasingly attractive to investors such as Aviva, where certainty of cashflows to meet liabilities is of paramount importance, while also recognising the increased need for affordable homes provision in local communities. Coastal has a strong track record in regeneration work and we are pleased to be providing financing to the business.'
