PIC invests £55m in Clanmil

Written by Adam Cadle

10/10/2022

Pension Insurance Corporation (PIC) has invested £55m as debt in Clanmil Housing Association (Clanmil).

PIC’s investment will be drawn down over a two-year period, helping Clanmil reduce interest payments, allowing them to complete their planning process. This is PIC’s second investment in a Northern Ireland-based housing association, following a £100 million investment in Apex Housing Association, in December 2021.

PIC’s investment in Clanmil is part of a wider £100 million fundraising, which will be used to help achieve their target of building 1,400 new homes by 2026. PIC was chosen as one of three investors following a full market tender due to its flexibility on maturity and unique deferral capabilities.

Eugenia Korobova, senior debt origination manager – public finance at PIC Capital, said: “We are very happy to have invested in Clanmil, one of Northern Ireland’s largest social housing providers. Sourcing long-dated cash flows is important to PIC in order to help us to achieve our purpose, which is to fund the pensions of our current and future policyholders. Investing in social housing and other illiquid assets allows PIC to generate enhanced yield, helping us to secure more pension liabilities. This, in turn, means more trustees can guarantee their members’ pensions through buy-ins and buyouts, greatly improving their financial security in retirement.”

Related Articles