The specialist pension insurer has invested the funds into the High Wycombe-based housing association to help refinance existing debt and fund future housing developments.

This recent funding brings PIC’s total investment to date in social and affordable housing across the UK to around £900m.

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Key points of the transaction: 

• £60m size, split across three tranches maturing in 2030, 2033 and 2040, to match PIC’s pension liabilities
• the funding arrangement will allow Red Kite to build up to 375 new homes, as well as refinance existing debt
• partly deferred for 12 months, providing certainty of funding cost for Red Kite, but reducing the cost of carry.

PIC has invested a total of almost £3bn in direct and bilateral deals, including with providers of student accommodation, housing, universities and renewables.

“We are very pleased to have worked with Red Kite on this transaction,” said Liz Cain, senior debt origination manager (pictured above).

“By working directly with Red Kite we have been able to shape a funding agreement which meets the needs of both parties, allowing the development of social housing, as well as backing the payment of our policyholders’ pensions on a secured basis.

“I want to thank the team at Red Kite for their straightforward approach to the transaction.”

JRCA advised Red Kite on the funding, which was raised through a private placement, while NatWest Markets acted as sole agent.