Thames pays the price for diversification
- From: Vol 10, Issue 2 (February 2009)
- Category: General
- Region: Europe
- Related Companies: Anglian Water, BNP Paribas, HSBC, Severn Trent, Thames Water and United Utilities
Thames Water’s debut € bond issue carries a classically defensive maturity. The company was still obliged to pay a premium in order to attract new investors.
Thames Water priced a €500 million benchmark bond on 27 January, just one day prior to announcing an acceleration of its redundancy programme, which it said was driven in part by higher borrowing costs.
The deal marks Thames’s first significant borrowing activity outside the sterling market, and although the four-year maturity was clearly a defensive choice, it achieved the ...
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