Risk management specialist Pension Insurance Corporation has bought a £50m bond issue from housing association Raglan Housing.
Pension Insurance Corporation are the sole buyers of the bonds.
Raglan, which owns and manages 12,320 homes in 95 local authority areas across the UK, will plough the funds raised from the bond issue into building new homes.
Pension Insurance Corporation has a £6bn portfolio comprising investment-grade corporate bonds and UK government debt, and is looking to diversify into infrastructure and housing association debt.
Mark Gull, co-head of asset-liability management at Pension Insurance Corporation, said: “Pension Corporation has had a very good year to date, with over £1.1bn of new transactions completed. So as our portfolio continues to expand, we are constantly looking at ways of further diversifying risk. Long-term investments of this nature are a very good fit for us as they are high credit quality and provide a good match for our long-term liabilities.
“We will be looking at other investments in this sector and we hope that this is the first of many investments of this nature. As banks continue to pull back from long-dated funding, we are very happy to work with housing associations, to help them meet their funding needs.”
sophia.furber@estatesgazette.com
