We are proud to provide a sustainable, affordable, clean and safe water supply and to manage and treat the waste water returned to us in a way that protects the environment.
In June 2006, the company issued two £100m index linked Eurobonds through its financing subsidiary, Northumbrian Water Finance plc, with maturities of 2049 and 2053 respectively.
Borrowing index linked debt means that the cash interest repayments are lower than for conventional debt whilst the outstanding principal increases annually with inflation. Over the maturity period the increase in the principal is matched by index linked growth in revenues.
The terms of the borrowings, 43 and 47 years, reflect the strategy of matching long term borrowings to the long term assets owned by the company. It also reflects the confidence of lenders in the long term financial sustainability of the business and the regulatory regime in which it operates.
Securing these funds at an early stage has also enabled the company to maximise interest received in the short term from cash placed on deposit.