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 launched a new and refreshed 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 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:
- Use of Proceeds
- Process for Project Evaluation and Selection
- Management of Proceeds
- Reporting
DNV 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.
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013 and older
Other programme information
For further details, you can download a list of bonds issued under the EMTN programme [PDF], as it was at 22 February 2022.
| 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 - 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 |
|---|---|
| Eleventh 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 |
