PIC Invests £160m in York Scheme

The University of York has agreed a £160 million debt investment deal with Pension Insurance Corporation (PIC), the specialist insurer of defined benefit pension funds.

The funds will be used to build around 1,500 en-suite rooms for students in a facility that will also come equipped with study spaces, exhibition spaces, cafes and a number of university departments.

The senior secured bond spans 45 years, with the transaction sponsored by Equitix, a long-term investor and developer of core infrastructure assets.

Commenting on the deal, Florence Carasse, Debt Origination Manager at PIC said: "We are delighted to have agreed this deal with the University of York, one of the top UK universities, which has demonstrated strong demand historically and will benefit from the expansion of its Campus East, to further improve student satisfaction. In addition, we are very happy to partner again with Equitix, the Sponsor, and Assured Guaranty, the financial guarantee provider with whom we have a strong relationship. Last but not least, this investment provides us with the characteristics we look for in our portfolio - indexed-linked, low risk, long-term, secure cashflows that are closely matched to our pension liabilities."