SW (Finance) I PLC Corporate Update: Successful Equity Raise (0753J)
August 11 2023 - 4:00AM
UK Regulatory
TIDM31HI
RNS Number : 0753J
SW (Finance) I PLC
11 August 2023
11 August 2023
SW (FINANCE) I PLC
CORPORATE UPDATE: SUCCESSFUL EQUITY RAISE
-- Funds managed by Macquarie Asset Management commit a further
GBP550 million of equity to the Southern Water Group
-- Additional equity will support the delivery of Southern Water's Turnaround Plan
Commitment of additional GBP550 million of equity capital and
Southern Water corporate update
On 7 July 2023, SW (Finance) I plc (the " Company ") announced
that, to maintain the momentum of its Turnaround Plan[1] and manage
the impact of a high inflation and interest rate environment on its
operating, maintenance and funding costs, Southern Water Services
Limited (" Southern Water ") and its holding companies (the "
Southern Water Group " or the " Group ") had engaged with its
shareholders to seek an additional GBP550 million of equity funding
(the " Equity Amount ") for the Southern Water Group.
Funds managed by Macquarie Asset Management have now committed
to provide the Equity Amount, of which GBP375 million will be
invested into Southern Water's regulated entity and GBP175 million
into its holding companies.
The Equity Amount enables Southern Water to increase planned
capital investment in its network during the current regulatory
period (2020-25) to GBP3 billion, equivalent to circa GBP1,500 per
household in its catchment area. In total, Southern Water will
invest more than GBP1 billion above its regulatory allowances in
this regulatory period to provide services to customers and invest
in its network.
The commitment of additional equity funding follows a GBP1.1
billion equity injection into the Southern Water Group by funds
managed by Macquarie Asset Management in September 2021.
The Equity Amount will be provided to the Southern Water Group
by 31 October 2023, subject to the satisfaction of market standard
conditions including mandatory regulatory filings.
For further information, please contact Stuart Ledger (Group
CFO) at:
Address: Southern House, Yeoman Road, Worthing, BN13 3NX, United Kingdom
Tel: 01903 272 056
Email: stuart.ledger@southernwater.co.uk
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END
[1]
https://www.southernwater.co.uk/media/8235/6579_ofwat_company_turnaround_plan.pdf
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UPDEAXPFFANDEEA
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