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

15 August 2006

United Utilities Water PLC (A2, stable; A-, stable) has agreed to sell GBP 50m of 50 year index-linked notes to RBC Capital Markets via the group's London listed E5bn medium term note programme.

The notes carry a coupon of 1.5865% on the inflation adjusted principal.

Since September 2005, United Utilities has raised over £1 billion of index-linked funding, of which £950 million 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 £1.2 billion and supports around 16 per cent of the group's regulated asset value.

This latest issue closes on 16 August 2006.