The group aims to manage assets in a way that embeds Environmental, Social and Governance (ESG) considerations in the investment decision making process.
Its sustainability strategy seeks to safeguard the interests of its customers, shareholders, and the community where it operates long term.
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Key features of the transaction with the housing association include:
- £70m of long-dated funding, maturing in 2070
- maturity profile tailored to match Phoenix’s pension liabilities
- funding will be used by Network Homes to support the delivery of its ambitious development programme of affordable homes in its primary area of operation.
The housing association owns and manages 20,000 homes, operating in 36 local authority areas across London, Hertfordshire and the South East.
Scott Robertson, head of Phoenix Group Capital, said: “We are delighted to be supporting Network Homes and their strategic plans to deliver more affordable housing.
“This transaction demonstrates our commitment to responsible long-term investments serving an important social purpose and providing sustainable long-term cash flows to meet our pension customer liabilities.
“Our strategic partner, Aberdeen Standard Investments, has provided excellent support throughout this transaction.”
Peter Benz, executive director of finance at Network Homes, added: “[We are] very proud to have established long-term relationships with Phoenix Group and Aberdeen Standard Investments, who share our strategic vision of delivering new affordable homes in line with our charitable objectives.”
Anup Dholakia, director of treasury at Network Homes, believes this transaction reflects positively on the strength of its historic and current performance, as well as the aspirational nature of its long-term business plan.
“We would also like to express our thanks to our placement agent, MUFG, in diligently supporting the transaction through to a successful conclusion.”