Aviva hits PFI lending limit

“The funding available through our commercial mortgages division is…restricted by FSA limits, determined by the level of capital held within our long term annuities business,” an Aviva spokesperson explained.

“We have now reached this lending limit. As a result, we are unfortunately unable to offer further Private Finance Initiative (PFI) loans at this time.”

The funder has approached the FSA in an effort to resolve the issue – but no timescale for any renewal of lending could be offered.

The spokesperson added that existing loans are not affected by the changes, while a number of loans where the projects are at preferred bidder stage will also be completed.

Aviva has been one of the most active lenders in the PFI market over recent years since the decline of the bank market due to the global economic crisis.

However, the Aviva Investors business, which is supporting the Hadrian’s Wall Capital fund that recently closed, is not affected by the changes.