Chicago, Feb. 27 – Severn Trent Utilities Finance plc priced €500 million of 4% 10-year sustainable bonds (Baa1/BBB+/A-) on Tuesday, according to a market source.
The bonds priced at 99.846 to yield 4.019%, or at mid-swaps plus 125 basis points. Initial talk was in the mid-swaps plus 150 bps area.
The bonds may be called early with a Bunds plus 25 bps make-whole premium. There is also a three-month par call.
BNP Paribas is responsible for billing and delivery. Barclays joins BNP as a global coordinator.
BNP, Barclays and SMBC are active bookrunners. They are joined by Bank of China as a passive bookrunner.
Allocations came from a final order book above €1.7 billion.
Proceeds will be used for eligible green projects.
The bonds will be guaranteed by Severn Trent Water Ltd.
The Birmingham, U.K.-based issuer provides water and treats wastewater in the United Kingdom.
| Issuer: | Severn Trent Utilities Finance plc
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| Guarantor: | Severn Trent Water Ltd.
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| Amount: | €500 million
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| Issue: | Sustainable bonds
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| Maturity: | March 5, 2034
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| Bookrunners: | BNP Paribas (billing and delivery), Barclays, SMBC (active), Bank of China
|
| Coupon: | 4%
|
| Price: | 99.846
|
| Yield: | 4.019%
|
| Spread: | Mid-swaps plus 125 bps
|
| Call features: | Make-whole call at Bunds plus 25 bps; three-month par call
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| Trade date: | Feb. 27
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| Settlement date: | March 5
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: A-
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| Distribution: | Regulation S
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| Price talk: | Mid-swaps plus 150 bps area
|
| Marketing: | Investor calls
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| ISIN: | XS2775728269
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