Thames Water Aims for Sustainability Amidst Recapitalisation and Pricing Strategy

Thames Water, Britain's largest water supplier, seeks £3 billion in new equity to avoid nationalisation. It has paused its pricing appeal with Ofwat following talks on recapitalisation, which it aims to complete by Q3. Six parties have submitted equity proposals, potentially involving senior creditor impairments.

Britain's leading water supplier Thames Water is striving to secure significant new equity within the next few months, as it places its regulatory pricing appeal on hold amid ongoing recapitalisation negotiations.

Facing potential nationalisation, Thames Water announced its need for £3 billion to stabilise, with debt restructuring necessary to prevent future financial collapse. Six parties have presented proposals for the equity raise, with Thames Water planning a deal in Q2 and completion by Q3.

As part of financial stabilisation efforts, Thames Water also aims to levy higher customer prices over five years. Ofwat has agreed to pause an appeal on these prices for 18 weeks after confident recapitalisation discussions. Most proposals involve senior creditor impairment, noted Thames Water.

(With inputs from agencies.)