Pension Insurance Corporation plc (“PIC”) has invested £195 million of debt finance in City Property Glasgow, a subsidiary of the Glasgow City Council Group.
The proceeds will be used by the council to help fund its equal pay settlement, and the 29-year amortising debt profile is a good match for PIC’s future pension payments.
The debt will be secured on a portfolio of five strategic city properties, including the Royal Concert Hall, the Riverside Museum and various sports and leisure facilities. The debt has also been guaranteed by Assured Guaranty, throughout the life of the bonds.
“We are pleased to have been able to complete this transaction with PIC, an increasingly important lender in the private debt space. The PIC team have been flexible and proactive in helping us achieve our aims,” said Pauline Barclay, managing director of City Property.
“We are pleased to have completed this transaction which supports Glasgow City Council. It represents a good portfolio diversifier for PIC. With almost £7 billion of insured pension scheme liabilities announced so far this year, PIC continues to look for secure, long-term cashflows to back our pension payments. These investments are a good fit for our long-term liabilities and at the same time have a wider benefit for society,” said Allen Twyning, head of debt origination at PIC.
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