UK’s Severn Trent to raise £1 billion in equity to finance initiatives aimed at reducing untreated sewage release and addressing leakages in its network.
Severn Trent, a leading British water company, has announced plans to raise £1 billion ($1.2 billion) in new equity. This substantial financial move is aimed at supporting an ambitious investment drive, focusing on minimizing the discharge of untreated sewage into rivers and addressing leakages across its extensive network of pipes.
The performance of water companies in Britain has recently been thrust into the political spotlight, with both customers and the government criticizing their track record. There have been widespread condemnations regarding the accumulation of debt and the perceived prioritization of shareholder and executive profits over ecological well-being.
According to Reuters, Severn Trent has outlined plans for a total expenditure of £12.9 billion over the next five-year regulatory period, concluding on March 31, 2030. This extensive program is expected to generate around 7,000 jobs and is part of a broader initiative to reduce spills and pollution, although specific details regarding the planned works have not been disclosed.
CEO Liv Garfield stated that the "commitment to a sustainable future" is central to the company’s plans, focusing on "healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth."
However, this commitment to sustainability and infrastructure improvement comes with a cost, with the company revealing that the average annual household bill is projected to increase by approximately 37% to £518 by 2029/30.
This equity raise includes a significant £500 million from Qatar's sovereign wealth fund and is expected to represent about 19% of the company's issued share capital. Qatar is currently the third-largest shareholder in Severn Trent, holding a 4.6% stake.
The need for such substantial investment is underscored by the imperative to upgrade aging infrastructure, plan for demographic growth, and adapt to the alterations in water flows induced by climate change. Several other British water companies, including Thames Water, Southern Water, and Yorkshire Water, have also sought additional funds to meet these evolving needs.
This development is indicative of the broader trends within the water industry, reflecting the growing emphasis on sustainability, ecological responsibility, and adaptation to the challenges posed by climate change and population growth.
Samira is an Electronics and Communications Engineer by profession, but deep inside, her heart is a nomad! She's a state champion debater, a public speaker, a scriptwriter, a theater actress, but most importantly — A GREEN CITIZEN! She thinks of herself as a storyteller who thrives on enjoying the life at fullest and telling everyone the tales of life.
Environment ,
UK Water Firm Raises £1B for Environmental Revamp
by : Samira Tasneem | Published: October 5, 2023
UK’s Severn Trent to raise £1 billion in equity to finance initiatives aimed at reducing untreated sewage release and addressing leakages in its network.
Severn Trent, a leading British water company, has announced plans to raise £1 billion ($1.2 billion) in new equity. This substantial financial move is aimed at supporting an ambitious investment drive, focusing on minimizing the discharge of untreated sewage into rivers and addressing leakages across its extensive network of pipes.
The performance of water companies in Britain has recently been thrust into the political spotlight, with both customers and the government criticizing their track record. There have been widespread condemnations regarding the accumulation of debt and the perceived prioritization of shareholder and executive profits over ecological well-being.
According to Reuters, Severn Trent has outlined plans for a total expenditure of £12.9 billion over the next five-year regulatory period, concluding on March 31, 2030. This extensive program is expected to generate around 7,000 jobs and is part of a broader initiative to reduce spills and pollution, although specific details regarding the planned works have not been disclosed.However, this commitment to sustainability and infrastructure improvement comes with a cost, with the company revealing that the average annual household bill is projected to increase by approximately 37% to £518 by 2029/30.
This equity raise includes a significant £500 million from Qatar's sovereign wealth fund and is expected to represent about 19% of the company's issued share capital. Qatar is currently the third-largest shareholder in Severn Trent, holding a 4.6% stake.
The need for such substantial investment is underscored by the imperative to upgrade aging infrastructure, plan for demographic growth, and adapt to the alterations in water flows induced by climate change. Several other British water companies, including Thames Water, Southern Water, and Yorkshire Water, have also sought additional funds to meet these evolving needs.
This development is indicative of the broader trends within the water industry, reflecting the growing emphasis on sustainability, ecological responsibility, and adaptation to the challenges posed by climate change and population growth.
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Samira Tasneem
Samira is an Electronics and Communications Engineer by profession, but deep inside, her heart is a nomad! She's a state champion debater, a public speaker, a scriptwriter, a theater actress, but most importantly — A GREEN CITIZEN! She thinks of herself as a storyteller who thrives on enjoying the life at fullest and telling everyone the tales of life.
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