United Utilities' tightest credit spread for 50 year index-linked debt

29 June 2007

United Utilities Water PLC (A2, review for downgrade; A, CreditWatch negative) has agreed to sell GBP 100m of 50 year index-linked notes to The Royal Bank of Scotland plc via the group's London listed E7bn medium term note programme.

This issue represents UUW's tightest credit spread to date for a 50 year issue, giving a coupon of 1.585% on the inflation adjusted principal.

Since September 2005, United Utilities has raised c.£1.46 billion of index-linked funding, of which c.£1.26 billion has been raised via MTN issues.  Index-linked funding now amounts to just over £1.5 billion and supports c.19.5% of the group's regulated asset value.