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Wednesday, 18 January 2012 09:50

UK water companies hit the bond markets

The start of 2012 has seen a flurry of UK water companies hitting the bond markets - with more in the pipeline.

Last week Wessex Water issued a £200 million 9-year bond at 4 per cent interest, while Northumbrian Water issued a £360 million 30-year bond at 5.125 per cent interest.

Now Severn Trent Water has issued a £250 million 30-year bond at 4.875 per cent interest.

Despite the prospect of major and far-reaching changes in the UK water sector, the appetite for investment remains undimmed given the relatively low regulatory and financial risks attached to the water and sewerage companies.

Overseas investors now own or hold shares in a number of UK utilities, including Northumbrian Water, Thames Water and Wessex Water.

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