PIC confirms £50m investment in University of Bath

Written by Michael Griffiths

31/10/2022

Pension Insurance Corporation (PIC) has invested £50m in debt issued by the University of Bath.

The specialist insurer of defined benefit (DB) pension funds confirmed the investment will be used to refinance an existing loan.

PIC secured the total debt issuance ahead of other investors, on the strength of its ability to provide a 50-year maturity.

Bath, which is ranked in the top 10 universities in the UK and 179th in the 2021 QS World University Rankings, self-arranged the transaction and was advised by EY Capital & Debt Advisory.

Greenberg Traurig provided legal advice to the investors while Mills & Reeve provided legal advice to the university.

Finance director at the University of Bath, Martin Williams, said: “We are pleased to have worked with PIC on this debt issuance. The PIC team has a very good understanding of the needs of universities as a result of their extensive experience of investing in this sector and were flexible and responsive in helping us achieve our aims.

“The University of Bath is performing extremely well and this refinancing, whilst maintaining our same level of debt, will help us to consolidate our position combining education, world-leading research and the wider student experience.”

PIC Capital senior debt origination manager – public finance, Eugenia Korobova, added: “We are delighted to have been able to work with the University of Bath. The very long-term maturity date reflects the strength of the University, a high-quality institution with an outstanding reputation, as well as the long-term nature of our business.

“It also reflects PIC’s purpose which is to pay the pensions of our current policyholders, currently numbering nearly 300,000, now and in the future.”

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