Investors
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
- To access a broad range of finance to obtain both the quantum and lowest cost compatible with the need for continued availability
- To manage our exposure to movements in interest rates to provide an appropriate degree of certainty as to our costs of funds
- To minimise our exposure to counterparty credit risk
- To provide an appropriate degree of certainty as to our foreign exchange exposure
- To maintain an investment grade credit rating for our regulated subsidiary Severn Trent Water Limited
- To maintain a flexible and sustainable balance sheet structure
And we plan to do this in a responsible and sustainable way.
Our long term credit ratings
| Severn Trent Plc | Severn Trent Water | |
Moody's |
Baa2 |
Baa1 |
Standard and Poor's |
BBB |
BBB+ |
Both the Moody’s and Standard & Poor’s ratings are on stable outlook. While the Standard & Poor’s long term issuer credit rating of Severn Trent PLC is BBB. Debt issued by Severn Trent PLC is rated BBB-.
Sustainable finance framework
We have developed a Sustainable Finance Framework to enable Severn Trent Plc and its subsidiaries to undertake future debt issues in a sustainable format.
This Framework is based on 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 2018
- The Green Loan Principles (GLP) and Sustainability Linked Loan Principles (SLLP) as published by the Loan Market Association (LMA) in March 2018 and March 2019
In line with these Principles, the Framework is presented through five key pillars:
- Use of Proceeds
- Process for Project Evaluation and Selection
- Management of Proceeds
- Reporting
- External review
DNV-GL has acted as our Second Party Opinion provider.
Severn Trent issued its inaugural £300m sustainable bond under the Framework in June 2020.
We committed to update investors on how the proceeds of the bond have been allocated to support defined “green” and “social” purposes.
Deloitte LLP have provided limited assurance to confirm that the Selected Information is prepared, in all material respects, in accordance with the Allocation Reporting Criteria set out in the Framework.
You can access and download the Allocation Report [PDF] from our reports and publications library, alongside Deloitte LLP’s assurance report [PDF].
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.
| Supplementary Prospectus | 2 December 2020 | Read and download |
|---|---|
| EMTN Prospectus | 25 August 2020 | Read and download |
| EMTN Prospectus | 20 June 2019 | |
| EMTN Prospectus | 20 June 2018 | |
| EMTN Prospectus | 21 June 2017 | Read and download |
| EMTN Prospectus | 23 June 2016 | Read and download |
| EMTN Prospectus | 23 June 2015 | Read and download |
| EMTN Prospectus | 19 June 2014 | Read and download |
| EMTN Prospectus | 21 June 2013 | Read and download |
| EMTN Prospectus | 19 June 2012 | Read and download |
| EMTN Prospectus | 1 July 2011 | Read and download |
| EMTN Prospectus | 30 July 2010 | Read and download |
| EMTN Prospectus | 22 July 2009 | Read and download |
| EMTN Prospectus | 31 July 2008 | Read and download |
| EMTN Prospectus | 3 August 2007 | Read and download |
| EMTN Prospectus | 4 August 2006 | Read and download |
| EMTN Offering Circular | 8 October 2004 | Read and download |
| EMTN Offering Circular | 25 July 2003 | Read and download |
| EMTN Offering Circular | 21 January 2003 |
Read and download |
| EMTN Offering Circular | 19 December 2001 |
Read and download |
| EMTN Offering Circular | 18 December 2000 | Read and download |
Other programme information
For further details, you can download a list of bonds issued under the EMTN programme [PDF], as it was at 31 December 2020.
| Severn Trent Water Limited - 31 March 2020 | Read or download |
|---|---|
| Severn Trent Water Limited - 31 March 2019 | Read or download |
| Severn Trent Utilities Finance PLC - 31 March 2020 | Read or download |
| Severn Trent Utilities Finance PLC - 31 March 2019 | Read or download |
You can read or download copies of other programme documents from this list:
| Agency Agreement | Read or download |
|---|---|
| Tenth 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 |
Retail bond
On 11 July 2012 Severn Trent Plc issued a £75m RPI linked 10 year sterling bond available to retail investors and listed on the London Stock Exchange's Order Book for Retail Bonds
Prices
The latest prices for the Retail Bond can be found on the London Stock Exchange Order book for Retail Bonds.
