Pension Insurance Corporation has made its first investment in Scottish social housing with a £40m private placement to Eildon Housing.
A drawdown of £15m will be deferred until 2020. The debt will be secured against Eildon assets and will mature in 2053 and 2055.
PIC said this profile has been tailored to match its pension liabilities in years where it is difficult to source cashflows in the public bonds markets, as well as meeting Eildon’s borrowing needs.
Eildon Housing will use the finance to support its development plan to deliver 750 new homes across the Scottish Borders by 2021.
Liz Cain, senior debt origination manager at Pension Insurance Corporation, said: “This is our first private placement investment with a Scottish housing association and we are very pleased to have worked with the team at Eildon to complete it.”
PIC has invested more than £1.5bn in the UK’s social housing sector through debt investments with housing associations. In 2018 it invested £265m in social housing, £400m in student accommodation and £150m in commercial property.
Santander Corporate and Investment Banking advised Eildon.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
