Anglian launches Green Bond in sustainable finance first

Anglian Water made financial history on 31 July by issuing the first utility Green Bond in sterling.

The £250m bond could technically finance any of Anglian Water’s capital expenditure because all of the company’s projects routinely have to pass a high bar on sustainability and deliver both cost efficiencies and carbon savings. But the company plans to use the money on some of its largest, and stand out schemes, such as innovative water abstraction, drought and flood resilience schemes, energy efficiency projects, and progressive water recycling and water resource management projects.

Anglian has published details of the framework it will use to assure investors their funds will be spent on green schemes and has sought independent third party assurance.

The issuance was oversubscribed. The bond will mature in August 2025 with a return to investors of 1.625%. Scott Longhurst, managing director of finance and non-regulated business for Anglian Water, said the issuance represented “the pinnacle in responsible financing”. He added: “We aim to lead the wider finance community and other business leaders towards more resilient and sustainable business models.”