Cambridge Building Society has secured a £15m capital injection from the Cambridgeshire County Council Pension Fund.
The money – which has boosted the society’s capital reserves by 25% – will be used to grow the business, lend to more borrowers and invest in products and services.
Stephen Mitcham, chief executive of The Cambridge, said: “This partnership marks the start of an exciting new era in the Society’s long history and will provide a bright and sustainable future for all existing and future members.
“The Cambridgeshire County Council Pension Scheme is the ideal partner for The Cambridge as we share the vision of delivering long-term benefits for residents and the local economy.
“This synergy replicates the original founding of The Cambridge which was Cambridge people coming together to help themselves and others.”
The Cambridge said the partnership is the first of its kind between a building society and local authority in the UK.
Councillor Roger Hickford, chairman of the Cambridgeshire County Council Pension Scheme, said: “The Cambridgeshire County Council Pension Fund welcomes the opportunity to invest in a long-established Cambridge-based business and in supporting local people in buying local homes.
“We applaud The Cambridge on this innovative share issue which will provide a stable and attractive investment return for our pension fund members.”
Peter Burrows, finance director of The Cambridge, said: “The capital injection we receive will let us build on recent investments in the business as well as allowing us to lend more in the form of mortgages.
“We provided record lending last year of £265m and this investment will allow us to continue our strong performance. In real terms it’s going to allow us to support 1,000 more families over the next two years to buy their own home.”