Southern Water has announced that funds managed by Macquarie Asset Management have agreed to invest an additional £550 million of equity into the Southern Water group.
This follows their £1.1 billion equity injection into the Southern Water group in September 2021.
The water company says the additional £550 million of equity funding will help them maintain the momentum of their Turnaround Plan and manage the impact of the high inflation and interest rate environment on operating, maintenance and funding costs.
Of the £550 million of new equity, £375 million will be invested in the regulated company to support additional investment aimed at protecting the environment and better serving our customers. The remaining £175 million will be invested into the wider Southern Water group to support financial resilience.
Southern Water says the new funding will enable them to increase planned capital investment in their network by 50 per cent to £3 billion (from £2 billion) during this regulatory period (2020-25), equivalent to investing £1,500 per household in their area.
Lawrence Gosden, Chief Executive Officer of Southern Water, said:
“We would like to thank Macquarie for its continued support, which will enable us to increase investment per household to more than £1,500 this regulatory period and manage the impact of cost inflation and higher funding costs on our business.
“Macquarie’s additional investment is a strong vote of confidence in our operational transformation. It will help us to deliver on our ambitions to customers and position Southern Water well for further future investment in our network.”
