United Utilities sells £35 million of 50-year index-linked notes

14 November 2006

United Utilities Water PLC (A2, stable; A-, stable) has agreed to sell £35m of 50 year index-linked notes to The Royal Bank of Scotland plc via the group's London listed E7bn medium term note programme.

The notes carry a coupon of 1.3805% on the inflation adjusted principal.  This funding will support the continuing growth of UUW, as it invests £2.9 billion across the current (2005-10) regulatory period.

Since September 2005, United Utilities has raised just over £1¼ billion of index-linked funding, of which just over £1 billion has been raised via MTN issues in long-dated maturities ranging from 30 to 50 years and priced at real yields ranging from 1.3 to 2%.  In total, the group's index-linked debt now amounts to £1,310m and supports around 18 per cent of the group's regulated asset value.

This latest issue closes on 21 November 2006.