Thames Water secures £3bn loan to see it through the next year

25th Oct 2024 08:53

(Sharecast News) - Thames Water secured a critical £3bn loan on Friday, to sustain operations through to October next year.

The funding came as the country's largest water utility grappled with substantial debt, sparking fears it could have run out of capital by the end of this year.

According to the BBC, the loan agreement was finalised on Thursday.

To stabilise its finances, Thames Water had said that it planned substantial increases in customer bills, aiming for a 59% rise in charges from 2025 to 2030 - an upward adjustment from its previous 23% proposal made in July to the regulator, Ofwat.

Investor interest in the company was reportedly strong, with up to six parties considering stakes, the BBC said.

Any potential influx of new investors depends on existing shareholders agreeing to a partial write-down of the company's £16bn debt, which was expected to grow to £17.9bn by March. Reporting by Josh White for Sharecast.com.

Reporting by Josh White for Sharecast.com.