Finance
UK's Southern Water strikes deal for fresh $916 million liquidity boost
Published by Global Banking & Finance Review®
Posted on July 8, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 8, 2025
2 min readLast updated: January 23, 2026
Southern Water secures $916M in new financing to tackle debt amid regulatory scrutiny. Macquarie supports with equity injection.
(Reuters) -UK's Southern Water said on Tuesday it had agreed to terms for a debt raise worth 675 million pounds ($916.1 million), in addition to recent offers worth roughly 2 billion pounds in fresh equity and bonds.
The utility, which serves about 2.6 million customers across the UK, has been battling a debt crisis amid growing regulatory scrutiny over water pollution and under-investment.
The company had in April secured commitments to raise 800 million pounds through bonds, and another 1.2 billion pounds equity support package from Australia's Macquarie Asset Management.
In a separate statement, Southern Water said it had struck an agreement with more than 72% of its financing creditors and controlling shareholder to allow the injection of 655 million pounds in equity in November as part of Macquarie's proposed commitment.
The agreement includes certain waivers to default if the company's Class A credit rating is downgraded below investment grade by any two of Fitch Ratings, Moody's and S&P Global Ratings.
Macquarie has been trying to overhaul Southern Water's performance following years of operational shortcomings. It has already invested 1.65 billion pounds since it took a majority stake in 2021.
($1 = 0.7368 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Leroy Leo)
Southern Water has secured a debt raise worth 675 million pounds, which is approximately $916.1 million.
Southern Water serves about 2.6 million customers across the UK.
Australia's Macquarie Asset Management is providing an equity support package worth 1.2 billion pounds.
The agreement includes waivers to default if Southern Water's Class A credit rating is downgraded below investment grade by any two of Fitch Ratings, Moody's, and S&P Global Ratings.
Since acquiring a majority stake in 2021, Macquarie has invested 1.65 billion pounds to improve Southern Water's performance.
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