AWG to tap the markets

Internal links

Water firms fear profits will go down the drain

Chris Mellor, chief executive of AWG, will on Wednesday unveil plans for a restructuring of the Anglian water business in which the company will tap the debt markets.

AWG will announce it has abandoned plans to demerge its regulated assets after discussions with the water regulator. After spending an estimated £15m on advisers, it is understood the company will announce refinancing plans through the bond market.

This could see AWG restructuring its existing £1.6bn borrowings and issuing bonds backed by the company's regulated asset base of £3.6bn.

Analysts predict it has the capacity to raise more than £2bn and return capital to shareholders. AWG is also expected to use the capital to boost its unregulated services business.