Anglian Water has launched a green bond aligned to its carbon commitments as part of the final phase of its financial restructuring.
The £250 million bond will be directly linked to the company’s newly-set targets of reducing capital carbon by 65 per cent and operational carbon by 30 per cent by 2025.
Money raised through the bond will allow it to raise funds for capital investment schemes to boost regional resilience in the face of climate change and population growth.
Anglian was the first utility company to issue a green bond to finance its capital programme. Last year it funded 850 projects via the bond issues.
Chief executive Peter Simpson said: “This framework further amplifies our commitment to the environment and the reduction of our carbon footprint. Linking it directly to Anglian Water delivering these tough carbon targets demonstrates how determined we are as a responsible business to take the steps we need to invest in resilience for our region in the most sustainable way.
“Funds raised will enable us to address the three-fold challenges of water scarcity, climate change and environmental protection in the face of a growing population, but it also represents the pinnacle in responsible financing.”
Striving for greater transparency, Anglian said the bond completes its three-year undertaking to improve trust and confidence by putting an emphasis on public purpose. Parent company, AWG, will reduce gearing of Anglian, which Simpson said would enhance and protect its credit rating.
Alongside its full-year 2020/21 report, Anglian published a community recovery plan setting out commitments to support vulnerable customers; to be inclusive and drive social mobility; to invest in communities; to support health and wellbeing; and to act with integrity. The five-point plan includes provision of financial support to 475,000 customers who struggle with their water bills.
During the first year of AMP7 to 30 March 2021 the company reported being ontrack to deliver its capital programmes and anticipated earning £10 million in outperformance rewards having met 81 per cent of its 45 performance commitments.