Pension Insurance Corp buys UK solar bond

Nov. 22 (Bloomberg) — Pension Insurance Corp., a London-
based insurer of pension funds, bought the U.K.’s first publicly
listed bond for solar power projects from developer Solar Power
Generation Ltd.
     The insurer invested 40 million pounds ($64 million) in a
bond that is linked to a pair of 5-megawatt photovoltaic plants
in Somerset, southwestern England, it said in an e-mailed
statement today. The bond matures in 2036, it said.
     The bond is the first to benefit from the U.K.’s feed-in
tariff system, which guarantees fixed premium rates for
electricity from solar installations. It will provide a good
match for the insurer’s pension liabilities thanks to the 24-
year inflation-linked cashflows for the two plants, according to
Pension Insurance.
     “Infrastructure investment will become increasing
important for the holders of long term capital, such as insurers
and pension funds, as they seek yield over and above that
available on gilts, in a low risk structure,” Mark Gull,
Pension Corp’s co-head of asset liability management, said in
the statement. “We will certainly look at other opportunities
as they arise.”
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