Thames Water Investors to Pump in £750 Million of Funding
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1970-01-01 08:00
Investors in troubled UK utility Thames Water Ltd have agreed to put in an extra £750 million ($960.11

Investors in troubled UK utility Thames Water Ltd have agreed to put in an extra £750 million ($960.11 million) of equity funding to help stave off a temporary takeover by the government.

Shareholders will provide the extra cash in the five years to 2030 to help with the company’s turnaround plan. The total need to 2030 is £2.5 billion, the company said in a statement on Monday. The company said it has “a strong liquidity position” including £4.4 billion of cash and committed funding.

Large amounts of inflation-linked debt mean that the water sector is being hit by rising interest rates. Companies are seeking extra equity investment to try to keep their gearing under control. Thames Water has held talks with government officials and regulators over contingency plans including a possible temporary nationalization. Gearing fell to 77.4%, its lowest level in 10 years, according to the company.

“The additional investment announced today is the largest equity support package ever seen in the UK water sector and underscores our shareholders’ commitment to delivering Thames’ turnaround,” said Ian Marchant, Chairman of Thames Water.

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