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Severn Trent Raise £75m in First UK RPI-Linked‎ Retail Bond

July 6th 2012

UK water company, Severn Trent has officially closed its offer period for an RPI-linked, ten-year sterling bond. The final issue size was £75 million, which was in line with the firm’s expectation of raising between £50 million to £100 million. Severn Trent announced the launch of the bond on 21 June 2012.

This marks a first for the UK Water Industry, as Servern Trent is the first company to make the RPI-linked bond available to retail investors, as they have previously only offered bonds to institutional investors.

Group finance director Mike McKeon said: “Our debut retail bond has been a great success. We have achieved our objective of opening up this exciting new source of finance for Severn Trent. It demonstrates that for the right company there is keen investor interest. The success of this offering means that we may consider further offerings to retail investors in future.”

The company has appointed Barclays Bank and Investec Bank as joint lead managers of the bond issue and they are expected to be issued on 11 July 2012.