The RPI-linked bond represented a first for the water sector in that it was available to private individuals rather than institutional investors.
Severn Trent said this move was to diversify sources of funding for its £2.5 billion capital investment programme over the 2010-2015 period.
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.”
Related articles:
Veolia Water sold for £1.2 billion
Lincs offshore wind farm secures £425m project financing
Utility bosses get top jobs at Green Investment Bank