United Utilities Water sells £100m of 50 year index-linked notes

07 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 is UUW's longest bond issue to date and extends the group's debt maturity profile to 2056. 

The notes carry a coupon of 1.847% on the inflation adjusted principal.

This latest transaction brings to a total of £950 million, the amount of index-linked funding raised by the group.  Index-linked funding now supports around 12 per cent of the group's regulated asset value.

The issue closes on 7 July 2006.