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Welsh Water has secured a £230 million loan from the European Investment Bank (EIB) to help fund its AMP6 investment programme.
The 15 year loan, which is the biggest deal between the EIB and Welsh Water in more than two decades, will be used to fund part of the £1.5 billion capital investment programme starting in April 2015.
The money will be used to fund a £120 million investment programme to rebuild or upgrade 12 water treatment works, as well as rolling out innovative schemes such as the £15 million sustainable urban drainage scheme, RainScape, in Llanelli and Gowerton.
The company said it has agreed a “competitive interest rate” with the EIB as a result of it “having the highest credit rating in the UK’s utilities sector”.
Welsh Water has benefitted from more than £500 million of loans from the EIB since 2001, and this has helped to finance more than £1 billion of capital expenditure projects.
Welsh Water chief executive Chris Jones said: “As a company without any shareholders, our sole focus is on providing the best possible service to our customers at the most affordable price.
“To deliver this, we must manage challenges such as accessing funding for our investment programmes at a competitive rate as well as the tight management of costs.”
The EIB has provided more than £3.2 billion for investment by water companies across the UK over the last five years.
EIB vice president Jonathan Taylor added: “Continued investment in UK water infrastructure is essential to allow customers to access clean drinking water and sanitation that is amongst the best in the world.”
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