Wales' biggest housing association, Pobl, has been boosted with a £65m investment to support its strategy of delivering 10,000 new homes over the next decade.
Pension Insurance Corporation plc (PIC), a specialist insurer of defined benefit pension funds, has acquired debt issued by Pobl, which has its headquarters in Newport.
The funds, the majority of which are deferred until 2021, will also be used to refinance existing long-term debt.
It is the second funding agreement between PIC and Pobl, following a £35m investment in 2013. To date, PIC has invested over £2bn in the 海角视频’s social housing sector.
The interest rate on the debt has not been disclosed.
Pobl is the largest housing association in Wales with over 17,000 homes under management located in South Wales.
It employs over 2,000 people across its three operational areas, homes and communities, commercial, and care and support.
The funding has been split into two tranches: £15m spot funding maturing in 2041 and £50m deferred funding, drawn down in 2021, maturing in 2059. The debt is secured against Pobl's housing assets.
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Wayne Fox, director of corporate finance at Pobl, said: “We are delighted to have secured this funding which will help us achieve our ambition of creating 10,000 new homes for Wales over the next ten years.
"PIC is a valued partner following our initial transaction in 2013 and having the opportunity to work again with a team that has such a strong understanding of the social housing sector makes for an efficient and successful process. We valued PIC’s flexibility, including the ability to defer drawdown.”
Eugenia Korobova, debt origination manager at PIC, said: “It has been a pleasure to work with Pobl. The management has a clear strategy and rationale to make their plans achievable and we are happy to continue supporting them to help deliver more affordable housing in south Wales. In addition, we have been impressed by Pobl’s focus on the need to address ESG-related risks, and their plan to have very energy efficient homes.
"This investment complements our portfolio providing low risk, long-term, secure cashflows that match our pension liabilities for decades into the future.”