Centrus advises Yorkshire Water in accessing new institutional CPI-linked loan funding

Centrus advises Yorkshire Water in accessing new institutional CPI-linked loan funding

Yorkshire Water, the UK provider to essential water and waste water services to two million households in the Yorkshire and Humber region, has completed a £75 million institutional term loan with Phoenix Group.

Centrus advised Yorkshire Water on the structuring of this placement which introduces Phoenix Group, a new investor to the company. This ensures Yorkshire Water can continue to fund its ongoing business activities as well as diversifying its investor base to new relationships.

The transaction included a fixed tranche and an inflation-linked tranche both at 13-year tenor. The inflation-linked tranche is Yorkshire Water’s first liability to be linked to the UK’s Consumer Price Index (“CPI”). Bank of China Limited, London Branch acted as arranger.

David Gregg, Group Treasurer at Yorkshire Water said

“This financing has allowed Yorkshire Water to continue to diversify its sources of long term finance and represents our first foray into the CPI-linked debt markets. Centrus advised on a successful transaction from initial discussions through to completion, ensuring an efficient delivery and best execution.”

David Cerqueira, Assistant Director at Centrus said

We are pleased to have supported our long-standing client in this ground-breaking transaction particularly as institutional term loans look set to form an increasing part of the liability funding mix for many UK utilities.”

For other case studies on Centrus previous projects with Yorkshire Water, please visit:

Centrus advises Yorkshire Water on successful removal of its Cayman Island companies

Yorkshire Water ground breaking £160m index-linked swap restructuring

Yorkshire Water: Ratings impact of strategic changes to its financing documents

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