Huge demand for United Utilities’ sustainable £300million bond

The North West’s water company, United Utilities, attracted huge demand for its first ever sustainable bond issue, which was more than three times over-subscribed. The £300 million bond, which matures in October 2029, will be issued under the company’s Sustainable Finance Framework and will support investment across the North West.
The funds will go towards projects that improve the resilience of water and wastewater infrastructure, reduce carbon emissions, enhance catchments and support customers who are struggling to pay their bills. All of these projects will contribute to achieving the UN Sustainable Development Goals for the region.
Phil Aspin, UU’s Chief Finance Officer, said: “This new bond attracted a wide range of institutional bond investors, with over 30 per cent being allocated to investors outside the UK, providing a broad opportunity to directly support environmental and social aspects of our business and adding to around £2bn of environmental-orientated investment previously secured from the European Investment Bank. 

"The investors really recognise the importance of deploying their capital to improve society and the environment.  They like our sustainable finance framework and it’s fabulous for them to see their money being put to such great use.”
The £300m bond has the lowest ever 8 year+ GBP corporate coupon at 0.875%.