United Utilities reaches £1 billion of index-linked funding

25 July 2006

United Utilities Water PLC (A2, stable; A-, stable) has agreed to sell GBP 100m of 50 year index-linked notes to The Royal Bank of Scotland plc via the group's London listed E5bn medium term note programme.

This follows UUW's debut 50-year index-linked issue completed earlier this month, which was also dealt via RBS. 

The notes carry a coupon of 1.815% on the inflation adjusted principal.

Since September 2005, United Utilities has raised £1 billion of index-linked funding, of which £800 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 £1,050m and supports around 14 per cent of the group's regulated asset value.

This latest issue closes on 28 July 2006.