Investing

in 21st centry infrastructure

Funding

new and refurbished homes

Enabling

better transport

The insurance and long-term savings industry is an engine of the UK economy, investing in 21^st century infrastructure across Britain, from homes to power to transport. Insurers like Prudential and Aviva have made a national commitment to £25bn in infrastructure spending, while Allianz is investing in housing and transport from Aberdeen to Dover. Pension Insurance Corporation has invested £100m in debt secured on the Thames Tideway Tunnel.

By its nature, the insurance and long-term savings industry is in it for the long term. We build relationships with private and public sector organisations that support them through the years it takes to build - and the centuries it takes to maintain - vital infrastructure. 

Red Kite Community Housing

In July 2017, PIC invested £60mn with Red Kite Community Housing Limited, a regulated housing association based in High Wycombe. The funds are to be
used to refinance existing debt and fund future housing development.

Main points of the transaction:

£60mn size, split across three tranches maturing in 2030, 2033 and 2040, to match PIC’s pension liabilities

Partly deferred for 12 months, providing certainty of funding cost for Red Kite, but reducing the cost of carry

The funding arrangement will allow Red Kite to build up to 375 new homes, as well as refinancing existing debt

Ray Prior, Group Director of Resources, at Red Kite said:

“We are incredibly pleased to have secured this new funding arrangement which gives us everything we need, particularly with greater flexibility, to deliver on our ambitious plans. We have many exciting things to do now and the new financing
makes those plans much more of a reality. For our customers, this will be invaluable in improving their homes and the lives of our communities”.