Linklaters advises Anglian Water on debut issuance of Green Bonds, the first by a UK utility

Linklaters has advised Anglian Water on its £250m debut issuance of Green Bonds, the first such issuance by a UK utility. The transaction was structured to meet the requirements of the 2017 Green Bond Principles as published by ICMA and enables Anglian Water to issue Green Bonds under its note programme as part of its whole business securitisation financing.

The proceeds of the Green Bond will finance a range of activities that support Anglian Water’s “Love Every Drop” sustainability strategy. They will also support the financing or refinancing capital expenditure during the current regulatory Asset Management Period; it is intended that some of Anglian Water’s largest flagship environmental schemes will be financed by the proceeds.

The order book for the transaction peaked at £800m with nearly 80 investors participating, a sign of market confidence in Anglian Water and a strong indication of the demand for Green investments more generally.

Scott Longhurst, managing director of finance and non-regulated business for Anglian Water, said: “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.” Jane Pilcher, group treasurer for Anglian Water, said sustainability was “how we do business, all day, every day. Issuing the very first public utility sector green bond amplifies our commitment to sustainability, and demonstrates how we operate as a leading business.”

Reza Taylor, Linklaters Partner, added:

We were delighted to support Jane and the rest of the Anglian Water team on this exciting transaction. We anticipate it opening up the market for other issuers in the Water and wider Regulated Utilities sector.”

The transaction was led by Julian Davies, partner and Reza Taylor, partner, supported by James McGivern, associate, and Alyssa Wu, associate. DNV GL provided the external review of Anglian Water’s eligibility criteria (as required under the 2017 Green Bond Principles) and the Joint Bookrunners were advised by Allen & Overy.

For more information please contact Lianne Robinson on +44 207 456 5779.