PIC invests £30m to secure ‘long-date’ cash flows

It will support the group as it focuses on paying ‘long-term pension liabilities’

Pension Insurance Corporation (PIC), a specialist insurer of defined pension funds, has announced the completion of a second debt investment of £30m in Livin House.

A County Durham-based housing association, Livin House has now seen £95m worth of investments from PIC following an original £65m injection in April 2019.

The deal will facilitate the development of 450 new homes in the North East of England over the next three years.

Eugenia Korobova, debt origination manager at PIC, said that the investment will provide PIC with “secure, long-dated cash flows” as it focuses on paying “long-term pension liabilities”.

She added: “This focus has important outcomes for society, including the provision of social housing, and securing more pension liabilities. 

“This means that more trustees can guarantee their members’ pensions through insurance-based pension risk transfer, greatly improving their financial security in retirement.”

The funding will be split into three tranches with drawdowns over the next three years and maturities between 2054 and 2059.

Sean Brodie, executive director of finance and development at Livin, said: “We are delighted to have secured this additional long-term funding. The deferred element is particularly helpful as it provides us with certainty of future funding, at a known cost.

“PIC’s team was flexible in providing a funding structure that meets our needs and proactive in helping us complete the transaction during volatile markets and I’d like to thank them for their efforts.”

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