We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.
Newsroom
Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.
HL Podcast
HL Insight
The owners of South East Water, under investigation for severe supply failures, have provided a £150mn loan to a unit in the utility group as it struggles with higher financing costs on its debt.
Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.
Published by
12 Feb 2024
The regional monopoly, which provides water for 2.3mn customers across Kent, Sussex, Surrey and Berkshire, is already on regulator Ofwat’s watch-list for financially at-risk companies.
In accounts filed in January, SE Water’s parent company, HDF Holdings, said its shareholders lent its Luxembourg-based financial subsidiary £150mn to replace third-party debt that was due to be repaid in December. The parent company’s owners include NatWest’s pension fund, a Canadian pension fund and an Australian infrastructure investor.
The loan decision underscores the stretched finances of several of the water companies in England and Wales, which are struggling with higher interest rates on their debt at a time when they are under pressure to invest in infrastructure. The 16 regulated water companies have racked up £64bn in borrowings after being
Read more on hl.co.uk