Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Add shares to your
quickpicks to
display them here!

TOP NEWS: Severn Trent aims to raise a billion for "record" investment

29th Sep 2023 09:07

(Alliance News) - Severn Trent PLC on Friday proposed "record" levels of investment in its new five-year business plan for April 1, 2025 to March 31, 2030.

The water utility said the plan includes GBP12.9 billion total expenditure across its network, including GBP5.0 billion of investment focused on enhancing capacity and service beyond current levels.

Severn Trent said it would be a "sustainability-led" plan including a 30% reduction in storm overflow spills, a 30% reduction in pollution, and a 16% reduction in leakage.

The business plan will be submitted in full to the UK Water Services Regulation Authority on Monday.

"By 2030 we will have transformed our network to provide our customers with the very best service. At the heart of this ambition is a commitment to a sustainable future - from healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth," said Chief Executive Liv Garfield.

Separately, the company proposed an equity issue to raise GBP1 billion to support this investment while also maintaining "strong financial resilience".

Severn Trent said the issue will raise around GBP500 million through a placing to institutional investors, GBP500 million through an investment from Qatar Investment Authority, and around EUR8 million through retail investors in the UK. It added that certain directors would subscribe for shares totalling GBP275,000.

Qatar Investment Authority is the sovereign wealth fund of Qatar.

Severn Trent shares were up 2.1% to 2,313.00 pence early Friday in London.

By Heather Rydings, Alliance News senior economics reporter

Comments and questions to [email protected]

Copyright 2023 Alliance News Ltd. All Rights Reserved.

FTSE 100 Latest