Severn Trent, the U.K. water utility, has announced plans to raise approximately £1 billion ($1.22 billion) through a share issue and subscription. The proceeds from this funding will be allocated towards the company’s new sustainability business plan.
Share Placing and Subscription
The funds will be directed toward various projects geared towards reducing leakage and spills from storm overflows, securing new water resources, and improving river ecology. The plan also includes a £550 million support package designed to assist 693,000 customers in paying their bills annually until 2030.
Asset Management Period 8
Severn Trent’s sustainability business plan aligns with the upcoming regulatory period from April 2025 to March 2030, known as Asset Management Period 8. This period focuses on enhancing efficiency and service levels in the water sector.
Share Placing Process
The share placing will be conducted through an accelerated book-building process, with the final share-placing price determined at the close of the bookbuild. Additionally, Severn Trent has announced a separate retail offer of up to £8 million euros ($8.5 million). It is expected that the total number of new shares issued will represent approximately 19% of the company’s existing issued share capital.