Corporate Update: Successful Equity Raise

SW (Finance) I PLC

11 August 2023

 

11 August 2023

SW (FINANCE) I PLC

CORPORATE UPDATE: SUCCESSFUL EQUITY RAISE

·    Funds managed by Macquarie Asset Management commit a further £550 million of equity to the Southern Water Group

·    Additional equity will support the delivery of Southern Water's Turnaround Plan

Commitment of additional £550 million of equity capital and Southern Water corporate update

On 7 July 2023, SW (Finance) I plc (the "Company") announced that, to maintain the momentum of its Turnaround Plan[1] and manage the impact of a high inflation and interest rate environment on its operating, maintenance and funding costs, Southern Water Services Limited ("Southern Water") and its holding companies (the "Southern Water Group" or the "Group") had engaged with its shareholders to seek an additional £550 million of equity funding (the "Equity Amount") for the Southern Water Group.

Funds managed by Macquarie Asset Management have now committed to provide the Equity Amount, of which £375 million will be invested into Southern Water's regulated entity and £175 million into its holding companies.

The Equity Amount enables Southern Water to increase planned capital investment in its network during the current regulatory period (2020-25) to £3 billion, equivalent to circa £1,500 per household in its catchment area. In total, Southern Water will invest more than £1 billion above its regulatory allowances in this regulatory period to provide services to customers and invest in its network.

The commitment of additional equity funding follows a £1.1 billion equity injection into the Southern Water Group by funds managed by Macquarie Asset Management in September 2021.

The Equity Amount will be provided to the Southern Water Group by 31 October 2023, subject to the satisfaction of market standard conditions including mandatory regulatory filings.

For further information, please contact Stuart Ledger (Group CFO) at:

Address:         Southern House, Yeoman Road, Worthing, BN13 3NX, United Kingdom

Tel:                  01903 272 056

Email:              [e-mail]

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[1] https://www.southernwater.co.uk/media/8235/6579_ofwat_company_turnaround_plan.pdf

 

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