Investors

Debt investors

How we source and manage our borrowing

Our financing strategy and credit ratings

Our financing strategy recognises that a strong liquidity position and the availability of committed funding are essential to meeting the Group’s objectives and obligations. Our principal operating subsidiary, Severn Trent Water Limited, is a long term business characterised by multi year investment programmes. Our key sources of borrowings include bond and European Medium Term Note (EMTN) issues, private placements, bank loans and finance leases.

 

Our treasury objectives

And we plan to do this in a responsible and sustainable way.

 

Severn Trent Utilities Finance plc (Ticker: SVTLN, Country: UK) has mandated RBC Capital Markets to explore the possibility of issuing up to £100m of private placement bonds in conventional and/or CPI linked format under their EMTN Programme. Any transaction will be guaranteed by Severn Trent Water Limited and is expected to be rated Baa1 by Moody’s, BBB+ by S&P and A- by Fitch. The transaction may be executed in the near future subject to market conditions.

 

Manufacturer target market (EEA MIFID II / UK MIFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EU PRIIPs and UK PRIIPs key information documents have been prepared as not available to retail investors in EEA or the UK. This communication is an advertisement for the purposes of Regulation (EU) 2017/1129 as it forms part of the UK legislation by virtue of the EU (Withdrawal) Act 2018. It is not a prospectus. The Base Prospectus and any supplements are available on the company’s website and the Final Terms, when published, will be available on the website of the London Stock Exchange.

Issuer Credit Rating

  Severn Trent Plc Severn Trent Water Limited Hafren Dyfrdwy Outlook
Fitch Ratings Limited BBB BBB+ BBB+ Stable
Moody’s Investors Service Limited Baa2 Baa1 - Stable
S&P Global Ratings UK Limited BBB BBB+ - Stable

Senior Unsecured Debt Ratings

  Severn Trent Plc Severn Trent Water Limited Hafren Dyfrdwy Outlook
Fitch Ratings Limited BBB+ A- A- Stable
Moody’s Investors Service Limited Baa2 Baa1 - Stable
S&P Global Ratings UK Limited BBB- BBB+ - Stable

Sustainable finance framework

Welcome to our Sustainable Finance Framework that enables Severn Trent Plc and its subsidiaries to undertake future debt issues in a sustainable format. We believe environmental and social responsibility is paramount. We are dedicated to operating in a manner that promotes long-term environmental stewardship and social progress. We understand that financial decisions have far-reaching implications, and integrating sustainability into our financial strategies is not just a choice but a necessity. Embracing sustainable finance principles enables us to align our economic goals with our commitment to environmental sustainability, resilience, and inclusive growth.  

The Framework is based on the existing international standards:

  • The Green Bond Principles (“GBP”), Social Bond Principles (“SBP”) and Sustainability Bond Guidelines (“SBG”) as published by the International Capital Market Association (“ICMA”) in June 2021
  • The Green Loan Principles (“GLP”) as published by the Loan Market Association (“LMA”) in February 2021

In line with these Principles, the Framework is presented through four key pillars:

  1. Use of Proceeds
  2. Process for Project Evaluation and Selection
  3. Management of Proceeds
  4. Reporting

EMTN programme

Severn Trent issues notes under its European Medium Term Note (EMTN) programme. Severn Trent plc and Severn Trent Utilities Finance plc are issuers under the programme.

 

 

You can read or download copies of the Base Prospectus, together with any supplements thereto, from this list.

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014 and older

Other programme information

For further details, you can download a list of bonds issued under the EMTN programme [PDF], as it was of 14 September 2023.

 

Severn Trent Water Limited - 31 March 2023 Read or download
Severn Trent Water Limited - 31 March 2022 Read or download
Severn Trent Water Limited - 31 March 2021 Read or download
Severn Trent Utilities Finance PLC - 31 March 2023 Read or download
Severn Trent Utilities Finance PLC - 31 March 2022 Read or download
Severn Trent Utilities Finance PLC - 31 March 2021 Read or download

You can read or download copies of other programme documents from this list:

Agency Agreement Read or download
Programme Agreement Read or download
Twelfth Supplemental Trust Deed Read or download
Severn Trent PLC - Memorandum and Articles of Association Read or download
Severn Trent Water Limited - Memorandum and Articles of Association Read or download
Severn Trent Utilities Finance PLC - Memorandum and Articles of Association Read or download