United Utilities sells £50 million of 50-year index-linked notes

24 October 2006

United Utilities Water PLC ("UUW") (A2, stable; A-, stable) has agreed to sell GBP 50 million of 50-year index-linked notes to UBS Investment Bank via the group's London listed E5bn medium term note programme.

The notes carry a coupon of 1.556% on the inflation adjusted principal.

UUW has now issued £425 million of index-linked notes which have an ultra long maturity of 50-years. 

Since September 2005, United Utilities has raised over £1.2 billion of index-linked funding, of which just over £1 billion has been raised via MTN issues in long-dated maturities ranging from 30 to 50 years and priced at real yields ranging from 1.3 to 2%.  In total, the group's index-linked debt now amounts to £1,275m and supports around 17 per cent of the group's regulated asset value.

This latest issue closes on 25 October 2006.