South West Water Finance, a unit of British utility Pennon Group, has raised 300 million British Pounds to help fund a major overhaul of its infrastructure.
The company issued fixed-rate notes with a 5.25% coupon due in 2031, according to a regulatory filing on Thursday.
This issuance is part of a wider 2.5 billion British Pound debt program the company established in August.
The funds will support Pennon's record 3.2 billion British Pound capital investment plan aimed at improving its water and wastewater systems amid increased regulatory scrutiny.
The move follows a recent agreement by its South West Water subsidiary to invest 24 million British Pounds to settle a wastewater investigation by regulator Ofwat.
Pennon is also undergoing significant leadership changes, including the planned retirement of its chief executive.
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Pennon Group's South West Water unit will invest 24 million British Pounds to improve its wastewater systems, avoiding a potential fine from the UK's water regulator, Ofwat.