Affinity Water is developing proposals to remove its overseas financing company from its corporate structure.
The company has appointed advisors and hopes to achieve consent from creditors by the end of this year. It intends to replace Caymans-based Affinity Water Programme Finance Limited with a UK registered subsidiary. In a statement, Affinity said: “AWPFL was established in 2013 to raise long-term finance for Affinity Water’s investment programme and operations through the issue of bonds listed on the London Stock Exchange. It was incorporated outside the UK for legal reasons that are no longer relevant. The company’s board considers it in the interests of customers and wider stakeholders to remove this entity from the financing structure.”
Affinity is the latest in a line of companies to announce Caymans closures, in response to the industry’s challenge from DEFRA and Ofwat on financing, transparency and public interest issues. Anglian Water led by charge becoming the first company to complete a removal, in late May. Others removing offshore units include Yorkshire Water and Thames Water.