PIC invests £40 million in Halton Housing

London, 29 January 2018 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has invested £40 million in long-dated, senior secured debt issued by Halton Housing, a regulated housing association with 7,000 properties in the Cheshire towns of Runcorn and Widnes. The funds, which will be made available at an agreed future date to match Halton’s needs and save on interest payments, will be used to finance its plans to deliver more affordable housing, as well as to repay maturing debt. In total PIC has invested £1 billion in social and affordable housing across the UK.

Halton Housing was advised by Link Asset Services, while Lloyds Bank acted as sole agent.

Key points of the transaction:

-          £40 million in size, with deferred drawdown, reducing the cost of carry

-          The maturity profile is sculpted to match PIC’s pension liabilities

-          The funds will be used by Halton to finance new housing development and to pay off maturing debt

-          The investment is secured on social housing properties

Neil McGrath, Executive Director of Business Services, at Halton Housing said: “We are very pleased to have entered into this funding agreement with Pension Insurance Corporation, which will allow us to build additional social housing in an area where demand is high. The deferred characteristic allows us to lock in certainty of funds at attractive interest rates well ahead of when the funds need to be utilised, resulting in cost of carry savings. As a result, Halton can continue to support the local population of Runcorn and Widnes with our high-quality, affordable housing.”

Marno Jooste, Debt Origination Manager at Pension Insurance Corporation, said: “We are delighted to have come to an agreement with Halton Housing on this competitive transaction. The maturity profile and deferred drawdown structure is well-suited to our liabilities and represents an attractive investment. The team at Halton were impressive in their proactive and organised approach and it was a pleasure to work with them on this deal, which further bolsters PIC’s investment and support for social housing projects up and down the country.”

- ends -

Notes to Editors:

For further information please contact:

Pension Insurance Corporation

Jeremy Apfel 
+44 (0)20 7105 2140
apfel@pensioncorporation.com

Teneo Blue Rubicon

Anthony Silverman
+44 (0)20 3757 9231
Anthony.Silverman@teneostrategy.com

About Pension Insurance Corporation
Pension Insurance Corporation plc (“PIC”) is a leading provider of buy-ins and buyouts to the trustees and sponsors of UK defined benefit pension schemes. At half year 2017, PIC had insured 145,400 pension fund members and had £24.2 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com

About Halton Housing

Halton Housing is a forward thinking and dynamic not for profit housing association that owns and manages 7,000 homes in the Cheshire towns of Runcorn and Widnes. www.haltonhousing.org

We employ over 280 talented members of staff, including 80 specialist trades people in our Construction Services team. Our Board work closely with our Executive Management team to ensure that we meet our promises and main objective – ‘Improving People’s Lives.’

Officially called a registered provider, we formed in December 2005 following the transfer of homes from Halton Borough Council.

Download Press Release - PIC invests £40 million in Halton Housing final.pdf (141kb)