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PIC invests in second Manchester PFI bond

07 January 2014

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Pension Insurance Corporation (PIC) has invested £74m in a PFI project to enable Manchester City Council to begin a regeneration scheme.

The council aims to regenerate more than 1,100 homes in the Brunswick area of the city.

The project will deliver construction and refurbishment of social homes, new parks and green spaces and play areas, as well as allowing the construction of 322 new homes for private sale.

PIC announced in September 2013 that it was the sole investor in £72m of bonds backed by a project agreement with Salford City Council, to fund the New Pendleton Social Housing PFI project.

The approximately £150m invested in Social Housing PFI bonds in Greater Manchester, is part of a wider infrastructure strategy by PIC, which has seen almost £2bn invested in the asset class this year.

PIC investment manager Allen Twyning said: "Having underwritten this deal and invested £74m, we are very pleased to have completed a second PFI bond in Greater Manchester in recent months.

"With more than £3bn of pension scheme liabilities insured in the past year, PIC has seen strong inflows, which we are seeking to invest in assets with long-dated, stable cash-flows."

The bond has been guaranteed by Assured Guaranty and Lloyds Bank was the bond arranger.

First published 07.01.2014