1st Jul 2025 11:32
(Alliance News) - The owner of Southern Water has pumped another GBP1.2 billion into the struggling utility to help boost its finances.
Sydney-based investment firm Macquarie Group Ltd – which previously owned Thames Water – has stumped up the fresh equity, starting with an initial GBP655 million with a further GBP545 million due by December.
The plans come as part of a deal that will also see the debt owed to Southern Water's holding company lenders slashed by more than half.
Southern Water, which supplies 4.7 million people across the south and south-east of England, has amassed nearly GBP9 billion of debt – making it one of the most heavily indebted water firms in the UK behind Thames Water.
It has seen its credit rating downgraded amid fears that it may break the conditions of its lending agreements.
But the firm's lenders have agreed to write down debt under the latest support package, reducing it debt mounting from GBP865 million to GBP415 million.
Lawrence Gosden, chief executive of Southern Water, said: "Every penny of this equity raise will go directly towards delivering the largest growth investment programme in the sector relative to its size, for the benefit of our customers and the environment.
"This follows GBP1.65 billion of equity already invested by Macquarie, since 2021.
"Taken together with the reduction in debt, and no forecast dividends for the 2025-30 regulatory period, the new investment will directly support Southern Water's financial resilience and improving performance."
By Holly Williams, PA Business Editor
Press Association: Finance
source: PA
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