United Utilities bond issue draws threefold oversubscription

United Utilities’ first sustainable bond issue, has been more than three times over-subscribed according to the company.

The £300m bond, which matures in October 2029, will be issued under United Utilities’ Sustainable Finance Framework and will support investment across the North West. It has an eight-year plus, GBP corporate coupon at 0.875%.

The funds, the company said, 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.

United Utilities’ chief finance officer, Phil Aspin, said over 30% of the allocation went 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.”