United Utilities pushes the envelope on CPI

A new 40-year bond linked to the consumer price index is believed to be the longest ever issued in this format by a UK water utility. With demand sporadic at best, what will it take to bring CPI-linked debt into the mainstream?

United Utilities has pushed the curve for CPI-linked debt in the UK water sector out to 2057, whilst bringing the total raised in the sector to £240 million.

UU’s latest pair of private placements – carrying maturities of 31 and 40 years – came hot on the heels of the £75 million 30-year deal done by Bazalgette Finance at the end of August, which brought a modicum...

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