Thames Water has this week raised another £300 million of debt on the bond market. This follows the £550 million it raised in mid-July. The issue attracted a lot of interest and was placed at 250 basis points over the 4% 2022 Gilt. Some had their allocations cut back. The aggregate proceeds are nearly 10% of Thames regulatory capital value and push the net debt to RCV value close to the 85% maximum stipulated by rating agencies.
United Utilities has also announced that Legal and General plc have upped their sharing holding to 4.23%. This news confirms that despite early fears over the “tough” Ofwat Final Determination actually the water sector remains highly attractive to investors.
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