United Utilities reaches £1/2 billion of 50-year index-linked funding

17 November 2006

United Utilities Water PLC (A2, stable; A-, stable) has agreed to sell £50m of 50-year index-linked notes to UBS Limited via the group's London listed E7bn medium term note programme.

The notes carry a coupon of 1.435% on the inflation adjusted principal.  Since June 2006, United Utilities has raised just over £500 million of ultra-long 50-year index-linked funding, priced at real yields ranging from 1.38 to 1.85%.  In total, the group's index-linked debt now amounts to £1,360m and supports around 18½ per cent of the group's regulated asset value.

This latest issue closes on 21 November 2006.