Senior bond to follow popular Anglian Water Class Bs

Published March 9th, 2017

Anglian Water issued its first public Class B subordinated bond since 2013 earlier this week, printing £200 million of 2.625% June 2027 notes via Barclays, BNP Paribas and Lloyds, into £630 million of investor demand.

The lack of an embedded call option shows just how far the Class B bond market has come – in its infancy, subordinated debt from UK water utilities depended on early redemption features being paired with long legal final maturity dates (which were demanded by the ratings agencies but disliked by debt investors).

Anglian has been one of the most prolific issuers of Class B debt, utilising the sterling, Euro and US dollar markets over the past 15 years. The new deal anticipates the redemption of two separate Class B tranches in October.

Anglian treasurer Jane Pilcher indicated to GWI that the company would also be returning to the Class A market later in the year.