Lenders propose $4.4 billion equity injection to rescue Thames Water

Yesterday 22:15

Lenders have offered to inject £3.35 billion ($4.43 billion) of new equity into Thames Water, the United Kingdom’s largest water supplier, in a bid to stabilize the company and avoid temporary nationalisation, Sky News reported on Saturday.

The proposal, submitted to the industry regulator Ofwat within the last ten days, comes from major creditors including Invesco, Elliott Management, and Silver Point Capital. In exchange for their investment, the lenders are expected to receive a minimum 10% stake in the recapitalized company.

Thames Water, which serves around 16 million customers, has faced increasing scrutiny over pollution incidents and financial instability, with nearly £20 billion in debt. A company spokesperson stated that discussions with stakeholders are ongoing to achieve a market-led recapitalisation in the best interests of both customers and the environment.

The equity injection is part of an accelerated effort to secure funding before the end of the month, highlighting ongoing challenges in the UK water sector and the need for significant investment to address infrastructure and environmental concerns.