Phoenix Group, a leading savings and retirement business, announces today that it has agreed a £70 million private placement with Network Homes. The funding will be used by Network Homes to support the development of more social and affordable housing.

The deal is further demonstration of Phoenix Group’s proactive strategy in its approach to Responsible Investment, and managing assets in a way that embeds Environmental, Social and Governance (ESG) considerations in the investment decision making process. This is one of the key pillars of Phoenix Group’s sustainability strategy, which seeks to safeguard the interests of its customers, shareholders and the community where it operates over the long-term.

Key features of the transaction with Network homes are:

£70 million 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

Network Homes is a regulated housing association which owns and manages 20,000 homes, operating in 36 local authority areas across London, Hertfordshire and the South East. They are part of the G15, a group of the largest social housing providers in London. As a charitable housing association with a strong social purpose, Network Homes also invests in the communities where it works, through economic development, employment and training, and social and environmental projects.

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, said: “Network Homes is 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 added: “We are exceptionally pleased with this innovative transaction, and the engagement with the process demonstrated by Phoenix Group and Aberdeen Standard Investments, under unprecedented operational circumstances. We believe this transaction reflects very positively on the strength of Network Homes’ historic and current performance as well as the aspirational nature of our 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.”