Ofwat agrees to Southern Water’s UK financing change

Ofwat has given consent to a Southern Water request to change the financing structure of the group, to replace a Cayman Island incorporated company with two new UK incorporated companies: UK Issuer and UK DebtCo.

In a letter, Ofwat granted consent subject to a number of conditions, one of which was that there would be no future debt issuance.

In its letter requesting Ofwat’s permission for the change, Southern explained: “Our objective is to deliver a simpler financing structure as part of the drive to increase the transparency of our business and sustain the trust and confidence our customers and Ofwat have in us.”

The existing arrangements date to 2003.