PIC invests £40 million in Royal College of Surgeons of England

London, 4 November 2020 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has invested £40 million in debt issued by the Royal College of Surgeons of England (“RCSEng”), to finance the final stages of the redevelopment of its flagship headquarters in Lincoln’s Inn Fields, London.

The grade II* listed Barry Building is being redeveloped to create a fit-for-purpose building which reflects its function as a centre for surgical excellence. This investment will transform the building into a state-of-the-art headquarters for training the next generation of surgeons, and help them to achieve and maintain the highest standards of surgical practice and patient care.

RCSEng is a professional membership organisation and registered charity, which exists to advance surgical care for patients. It supports over 27,000 members in the UK and internationally by improving surgical skills and knowledge, facilitating research and developing policy and guidance.

Key points of the transaction:

• The transaction has an investment term of 30 years
• The amortising debt profile is a good match for PIC’s future pension payments
• The redevelopment project commenced in 2017 and is due for completion in 2021
• The transaction was arranged by Lloyds Bank Corporate Markets

Professor Neil Mortensen, President at the Royal College of Surgeons of England said: “We are pleased to have secured this funding from PIC. The redevelopment will see the building transform from a sprawling warren of corridors, built in the aftermath of WWII, to a state-of-the-art training centre for future generations of surgeons, whilst retaining its historical significance.

“Our new building will be the nerve centre for the development and proliferation of the best surgical training techniques and practice in the world. Surgical skills taught here in the coming century will radiate into operating theatres around the world, for the benefit of millions of patients.

“It is the first time we have worked with an institutional investor and the PIC team showed great understanding and knowledge in structuring this investment to meet our needs. We would also like to thank our professional advisers, Mills & Reeve LLP and Lloyds Bank Corporate Markets, for assisting throughout this transaction.”

Elizabeth Cain, Deputy Head of Debt Origination at PIC, said: “We are proud to be supporting the future of this important organisation with this £40m investment. We were attracted by the College’s strong governance model and by the social value of its work, with many future generations set to benefit from the College’s vision for its headquarters. As we increase the number of pension schemes we insure, PIC continues to look for secure, long-term cashflows to back our pension payments. These investments are a good fit for our long-term liabilities and at the same time have a wider benefit for society.”

Rory Brown, Director, Private Placements at Lloyds Bank Corporate Markets, said: “We were delighted to support the Royal College of Surgeons of England with this important financing. The private placement market successfully delivered the College’s transaction objectives, achieving long duration and attractive pricing. This reflects the strong credit story of the College while demonstrating the flexibility of the private placement asset class to deliver bespoke financing structures to suit the issuer’s funding requirements.”

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation     
Jeremy Apfel                         
+44 (0)20 7105 2140

apfel@pensioncorporation.com

About Pension Insurance Corporation
The purpose of Pension Insurance Corporation (“PIC”) plc 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 2020, PIC had insured 237,600 pension scheme members and had £47.7 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 visitwww.pensioncorporation.com