Finance and investment

“Responsible financing” mechanism will be used to address water scarcity, climate change and environmental protection

Anglian Water has issued a £250M green bond to finance a range of activities that support the water company’s sustainability strategy.

The bond will mature in August 2025 with a return to investors of 1.625 per cent. The order book peaked at £800m at one point on 31 July with nearly 80 investors participating. Anglian Water’s green bond framework was independently reviewed by DNV GL.

Anglian Water’s wider sustainability and corporate responsibility strategy has committed the company to achieve a range of ambitious environmental goals, including becoming a carbon neutral business by 2050.

The company has already reduced embodied carbon by 55 per cent from a 2010 baseline and aims to reach 60 per cent carbon reduction by 2020.

Over the next 25 years, Anglian has also pledged to enable sustainable economic and housing growth in the East of England – the UK’s fastest growing region – to make it resilient to the risks of drought and flooding.

Anglian will use the new bond to support some of the largest capital expenditure programmes included within its sustainability strategy, such as innovative water abstraction, drought and flood resilience schemes, energy efficiency projects, and progressive water recycling and water resource management projects.

Jane Pilcher, group treasurer for Anglian Water, said: “Sustainability is simply how we do business, all day, every day. Issuing the very first public utility sector green bond today amplifies our commitment to sustainability, and demonstrates how we operate as a leading business. We were able to issue this Green Bond because of our continuous drive to generate value for our customers while delivering environmental savings, all of which is made possible by investor confidence in our strong financial structure, governance and reporting.” 

Scott Longhurst, managing director of finance and non-regulated business for Anglian Water, added: “This bond issue 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. We aim to lead the wider finance community and other business leaders towards more resilient and sustainable business models.”

This story first appeared on Utility Week’s sister site, WWT Online