- Pennon Group and subsidiary South West Water enter into two new GBP Bilateral Impact Loan Revolving Credit Facilities (RCF) with Societe Generale Corporate & Investment Banking
- South West Water enters into an additional green RCF with NatWest
- Better environmental performance and cleaner beaches drive lower margins for Pennon
As part of its pioneering commitment to sustainable finance, Pennon has signed new credit arrangements with both Societe Generale and NatWest. The facilities are among the first of their kind in the UK and will support Pennon’s key Environmental and Social Governance (ESG) priorities for the future:
- Achieving a sector-leading ESG performance
- Continuously improving bathing water quality in the South West of England
Pennon Group and South West Water have entered into two new GBP Bilateral Impact Loan Revolving Credit Facilities (RCF) with Societe Generale Corporate & Investment Banking in London. The facilities represent £30 million for Pennon Group and £20 million for South West Water.
In addition, South West Water has also signed a £30m green RCF with NatWest.
The new facilities represent an important milestone as Pennon seeks to incorporate environmental and social values into its wider banking facilities as part of its recently-launched Sustainable Financing Framework. This is the first credit facility of its kind with a margin directly dependant on the company’s sustainability rating. Pennon and South West Water are helping to lead the charge for sustainability by bringing sustainable principles into its core banking facilities.
As an environmental utility infrastructure company at the top end of the FTSE 250 the Group has made strong commitments to address economic, social and environmental challenges.
Susan Davy, Chief Finance Officer, Pennon Group said: “The recent launch of our Sustainable Finance Framework formally recognises our commitment to investments which bring significant environmental and social benefits across a range of areas and we are delighted to be entering into arrangements that support this approach.
“The new GBP Bilateral Impact Loan Revolving Credit Facilities will support our ambition to achieve sector-leading sustainability performance and an enhanced environmental and social governance (ESG) score. This includes through the investments we are making in improvements to bathing water quality - over and above our Business Plan commitments – given its critical importance to the environment and economy of the South West Water region.”
Sadia Ricke, Societe Generale’s Chief Country Officer (UK) commented: “We continue to develop our finance offering that integrates environmental and social values so that we can fully support our clients who are committed to a long-term ESG strategy. This transaction fits with our own objectives to be a leading player in terms of Corporate and Social Responsibility.”
Peter Dooley, Head of UK Energy and Utilities for NatWest, said: “We have worked with South West Water for a number of years and are delighted to have been able to support them with this revolving credit facility.
“NatWest is committed to becoming a more sustainable bank and supporting the UK’s ambition to become a low carbon economy is an important part of this.”
Notes to editors
Pennon’s Sustainable Financing Framework is online at:
www.pennon-group.co.uk/investor-information/sustainable-financing-framework
Pennon Group media enquiries to:
Sarah Heald
[email protected]
01392 443020
Dan Jones
[email protected]
01392 443829
About Pennon (www.pennon-group.co.uk)
Pennon is one of the largest environmental infrastructure FTSE 250 groups in the UK with assets of around £6.2 billion and a workforce of around 5,000 people. 65% of Pennon’s shareholders are predominantly UK pensions, savings, charities, individuals and employees, with two thirds of South West Water’s employees being shareholders.
The merged water company of South West Water and Bournemouth Water provides water and wastewater services to a population of c.1.7 million in Cornwall, Devon and parts of Dorset and Somerset and water only services to c.0.5 million in parts of Dorset, Hampshire and Wiltshire. Since 1989 South West Water has invested around £7 billion to improve water and wastewater services. This investment means that we will supply some of the best quality drinking water in the UK and have achieved record bathing water quality in recent years.
South West Water was awarded enhanced status for its 2015-2020 Business Plan, and has the highest potential returns in the water sector to 2020.
Viridor is a leading UK recycling, energy recovery and waste management company, providing services to more than 150 local authorities and major corporate clients as well as over 32,000 customers across the UK.
Pennon Water Services provides water and wastewater retail services to over 160,000 non-household customer accounts across Great Britain, and is an 80:20 venture with South Staffordshire Plc.