Southern Water has announced it has secured £300 million of additional debt financing following the completion of a bond issuance on 4th November, 2024.
The water company said the latest bond issuance was oversubscribed, suggesting ongoing strong support for the business amongst the investment community. With this issuance, Southern Water has successfully secured c. £1.5 billion of new debt financing over the past 12 months. The company’s shareholders have also injected more than £1.6 billion of fresh equity into the Southern Water group since 2021.
Southern Water said this latest issuance adds to its already strong liquidity position and will provide additional funding certainty while awaiting Ofwat’s Final Determination on its 2025-30 business plan. Southern Water continues to maintains three investment grade credit ratings from Standard and Poor’s, Moody’s and Fitch, despite the decision by Standard and Poor’s last week to take negative action.
Stuart Ledger, Chief Financial Officer of Southern Water said:
“The success of this bond issuance at a time when investors are looking closely at the wider sector and regulatory landscape is a strong endorsement of the work our teams are progressing to improve our operations for the benefit of customers and the environment.”
