Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
United Utilities (UU) has reported its first sustainable bond is oversubscribed three times over, as investors show an appetite to support infrastructure projects.
The £300 million bond is the first of its kind UU has issued and the company said it would support customers who are struggling to pay their bills as well as infrastructure and environmental enhancement projects.
These will include improving resilience of water and wastewater infrastructure, reducing carbon emissions and enhancing catchments across the north west region.
Phil Aspin, UU’s chief finance officer, said: “This new bond attracted a wide range of institutional bond investors, with over 30 per cent being allocated to investors outside the UK, providing a broad opportunity to directly support environmental and social aspects of our business and adding to around £2 billion of environmental-orientated investment previously secured from the European Investment Bank. The investors really recognise the importance of deploying their capital to improve society and the environment.”
The bond matures in October 2029 under the company’s Sustainable Finance Framework with an 8 year+ GBP corporate coupon at 0.875 per cent.
Please login or Register to leave a comment.