CDC Pensions Scheme, London, committed its £370 million ($619 million) in assets to a pension “buy-in” with Rothesay Life, CDC spokeswoman Miriam de Lacy confirmed.
In the deal, the plan will swap proceeds from its £370 million corporate bond portfolio for a commitment from Rothesay Life to pay pension liabilities.
Rothesay Life, a subsidiary of Goldman Sachs, was selected after a competitive bidding process. The firm insured nearly £2 billion of pension liabilities for pension funds sponsored by RSA Insurance Group in July.
CDC is a U.K. government-owned £2.7 billion emerging markets development firm. The firm makes indirect investments to help build wealth in poorer countries, according to its website.
Investment consultant Mercer, actuary Watson Wyatt Worldwide and law firm Sacker & Partners advised the scheme in the deal.
