PIC invests £160 million in the University of York

London, 18 December 2019 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has agreed a £160 million debt investment in student accommodation for the University of York (“York”). The funds will be used to construct around 1,500 high quality en-suite rooms for students in a facility which will also provide student study spaces, exhibition spaces, cafes and a number of university departments. York is one of the UK’s top 20 universities and is a member of the prestigious Russell Group.

The senior secured bond spans 45 years, and has a maturity tailored to a year when it is hard to find cashflows in the public debt markets. The transaction is sponsored by Equitix, a long-term investor and developer of core infrastructure assets, and wrapped by Assured Guaranty, which provides additional financial security. The investment has an overall S&P rating of AA.

Key points of the transaction:

• Long-dated, inflation linked loan, maturing in 2064
• Regular, secure, long-term cashflows, which are a good match for PIC’s pension payments

Florence Carasse, Debt Origination Manager at PIC, said: “We are delighted to have agreed this deal with the University of York, one of the top UK universities, which has demonstrated strong demand historically and will benefit from the expansion of its Campus East, to further improve student satisfaction. In addition, we are very happy to partner again with Equitix, the Sponsor, and Assured Guaranty, the financial guarantee provider with whom we have a strong relationship. Last but not least, this investment provides us with the characteristics we look for in our portfolio – indexed-linked, low risk, long-term, secure cashflows that are closely matched to our pension liabilities.”

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For further information please contact:

Pension Insurance Corporation

Harshna Brahmbhatt
+44 (0)20 7105 2148
brahmbhatt@pensioncorporation.com

Teneo                         

Douglas Campbell
+44 (0)20 3757 9247
douglas.campbell@teneo.com

About Pension Insurance Corporation
The purpose of Pension Insurance Corporation plc (“PIC”) is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At half year 2019, PIC had insured 218,000 pension scheme members and had £39.6 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. 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

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