United Utilities sells its longest ever linker

17 May 2007

United Utilities Water PLC (A2, stable; A, stable) has agreed to sell GBP 50m of 50.5 year index-linked notes to HSBC plc via the group's London listed E7bn medium term note programme.

This is UUW's longest bond issue to date and extends the group's debt maturity profile to November 2057.

The notes carry a coupon of 1.702% on the inflation adjusted principal.

Since September 2005, United Utilities has raised approximately £1.4 billion of index-linked funding, of which approximately £1.2 billion has been raised via MTN issues.  Index-linked funding now amounts to just over £1.4 billion and supports around 18 per cent of the group's regulated asset value.

The issue closes on 21 May 2007.