Thames Water to launch fundraising in coming weeks amid cash crisis

The company, which serves astir 16 cardinal people, confirmed successful a connection that it had been successful talks with imaginable funders since July

Thames Water has announced it's gearing up to rise caller funds from investors successful the adjacent fewer weeks.

The h2o giant, struggling nether fiscal strain, revealed it has been courting imaginable backers since July and is present acceptable to initiate its authoritative "equity solicitation process" shortly. This fundraising effort is apt to widen past December, erstwhile Ofwat, the manufacture regulator, is owed to denote its last determination connected however overmuch h2o companies tin complaint customers from 2025 to 2030.

Serving astir 16 cardinal customers and tangled successful a backing dilemma, Thames Water admits its currency reserves volition adust up by May 2025 unless caller superior is secured. With implicit £15bn of debt, Ofwat is preparing to bring successful an autarkic show to ticker implicit Thames Water's betterment plans.

Without an injection of caller funds, the steadfast risks being nationalised adjacent year, a script the Labour Government wishes to avoid. Thames Water is besides dealing with the backlash of projected crisp increases successful h2o charges, alongside contention surrounding the wide contamination of waterways owed to sewage overspills.

As per the past update connected August 31, the institution held astir £1.57billion successful liquid assets, but regulations necktie up £380million of this arsenic "reserves" for its backing commitments. The institution disclosed past Friday that it's seeking support from creditors to pat into that £380million reserve, informing that without these funds, it volition deed a fiscal standstill by year's end.

In the lawsuit of needing further funds to past until May, it has 2 much imaginable sources. It tin pat into £420million of Class A and Class B "undrawn committed facilities", which enactment arsenic a signifier of recognition agreement. There's besides a £550million cookware of "undrawn reserve liquidity facilities" astatine its disposal, the institution revealed. With each this backing successful hand, it's acceptable to marque it done to the extremity of May 2025.

To propulsion past that date, the institution is gearing up for a caller circular of fundraising successful the upcoming weeks.