We have a majority of our portfolio invested in investment grade corporate bonds, UK government debt and cash. However, in a continued low growth, low return environment it is important that we are able to source and invest in opportunities that provide us with investment grade, inflation linked, long term cash-flows. A good example of this is infrastructure debt.
PIC has built an internal team which now has a very strong track record in sourcing and investing directly in infrastructure debt and the private debt markets more widely. Amongst other investments, in 2015 we invested £75 million in debt issued by Virgin Atlantic Airways, secured on its portfolio of landing slots at Heathrow, the first time this type of transaction has been completed. We have also invested £70 million in debt ultimately issued by the Church of England Pension Board (see case study below).
Previous investments in this area include investing in the first European solar bond, as well as social housing, hospitals, schools and student accommodation. In effect this means our business is moving capital efficiently through the economy, putting it to work where it can best support jobs and growth. It’s a great example of socially useful capitalism.
“Pension buyout firm PIC is among a handful of institutional investors…that have blazed the trail by providing debt to greenfield projects.” PIC planning on more infra debt investments, Michael Pooler, Infrastructure Journal
We are always happy to discuss potential opportunities. For further information, please call:
Head of Debt Origination
0207 105 2232
INVESTING IN CHURCH OF ENGLAND HOUSING
In September 2015 PIC lent £70 million to the Church of England Pensions Board, which operates the Church’s retired-housing scheme, a new source of long-term financing for the scheme.
The bond was the first ever Sterling issue with the coupon but not the principal linked to CPI and represented a step forward in the CPI linked bond market.
PIC has a strong track record of investing in transactions that meet our need for high levels of security, are a match for our liabilities and which are ground-breaking in nature.
One of PIC's CofE housing investments