31HI Sw.fin.a1

TIDM31HI

RNS Number : 0753J

SW (Finance) I PLC

11 August 2023

11 August 2023

SW (FINANCE) I PLC

CORPORATE UPDATE: SUCCESSFUL EQUITY RAISE

-- Funds managed by Macquarie Asset Management commit a further GBP550 million of equity to the Southern Water Group

   --    Additional equity will support the delivery of Southern Water's Turnaround Plan 

Commitment of additional GBP550 million of equity capital and Southern Water corporate update

On 7 July 2023, SW (Finance) I plc (the " Company ") announced that, to maintain the momentum of its Turnaround Plan[1] and manage the impact of a high inflation and interest rate environment on its operating, maintenance and funding costs, Southern Water Services Limited (" Southern Water ") and its holding companies (the " Southern Water Group " or the " Group ") had engaged with its shareholders to seek an additional GBP550 million of equity funding (the " Equity Amount ") for the Southern Water Group.

Funds managed by Macquarie Asset Management have now committed to provide the Equity Amount, of which GBP375 million will be invested into Southern Water's regulated entity and GBP175 million into its holding companies.

The Equity Amount enables Southern Water to increase planned capital investment in its network during the current regulatory period (2020-25) to GBP3 billion, equivalent to circa GBP1,500 per household in its catchment area. In total, Southern Water will invest more than GBP1 billion above its regulatory allowances in this regulatory period to provide services to customers and invest in its network.

The commitment of additional equity funding follows a GBP1.1 billion equity injection into the Southern Water Group by funds managed by Macquarie Asset Management in September 2021.

The Equity Amount will be provided to the Southern Water Group by 31 October 2023, subject to the satisfaction of market standard conditions including mandatory regulatory filings.

For further information, please contact Stuart Ledger (Group CFO) at:

   Address:         Southern House, Yeoman Road, Worthing, BN13 3NX, United Kingdom 
   Tel:                  01903 272 056 
   Email:              stuart.ledger@southernwater.co.uk 

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[1] https://www.southernwater.co.uk/media/8235/6579_ofwat_company_turnaround_plan.pdf

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August 11, 2023 04:00 ET (08:00 GMT)

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