Client stories

Investors welcome Thames Water’s return to the EUR market

Delivering essential services while protecting the environment and making a difference in the community

Thames Water Utilities Ltd is the UK’s largest water and wastewater services provider, serving a population of 15 million across London, Thames Valley and the surrounding areas. Managing 97 water treatment works and 354 sewage treatment works, Thames Water provides around 2.6 billion litres of clean drinking water, and treats up to 4.7 billion litres of wastewater, every day.

To incorporate the work Thames Water is doing to create long-term value for society and local communities, alongside its objectives for environmental protection, the company launched a new Sustainable Financing Framework last year, which replaces its Green Bond framework. DNV Business Assurance Services UK provided an independent assessment of the framework, confirming that it aligns with the International Capital Market Association’s Green Bond Principles 2021, Social Bond Principles 2021, Sustainability Bond Guidelines 2021, and the Loan Market Association’s Green Loan Principles 2021 and Social Loan Principles 2021.

Strong investor support allows Thames Water to upsize dual green tranche

Supporting Thames Water in December last year to present its new Sustainable Financing Framework and broader ESG strategy to investors in a non-deal roadshow, the utility provider mandated NatWest to advise in the role of Joint Lead Manager for a green EUR issuance under the new framework.

To prepare for Thames Water’s debut green visit to the EUR market, as one of the Joint Lead Managers, NatWest arranged a deal specific roadshow and several meetings, engaging with over 100 investors. Based on their feedback, Thames announced a EUR green dual tranche 6-year and 10-year transaction, with an expected size of €500 million per tranche.

Investors showed strong appetite when order books opened, allowing the issuer to adjust the pricing at the tighter end of guidance as well as upsize the transaction to €575 million per tranche.

Thames Water, which is the first UK Water Utility to access the EUR market with a public benchmark transaction since 2010, will use the proceeds of the green bonds for eligible projects outlined in its framework. Green project categories include: “Sustainable Water and Wastewater Management”, “Renewable Energy”, “Energy Efficiency”, “Pollution Prevention and Control”, “Sustainable Management of Natural Resources”, “Terrestrial and Aquatic Conservation”, “Clean Transportation”, and “Climate Change Adaptation”. 

Green bonds help Thames Water diversify its funding sources

Peter Dooley, Head of UK Energy and Utilities, NatWest, commented: “We congratulate our customer on their strong return to the EUR market, achieving a good size for this dual tranche green bond while also attracting a diverse investor base. This successful transaction positions Thames Water well for future visits to this market.”

Alastair Cochran, CFO, Thames Water, said: “On behalf of the team at Thames Water, I wanted to reach out to thank NatWest as one of our Joint Lead Managers on the dual tranche Euro issue, utilising our updated Sustainable Financing Framework. Our purpose is to deliver life’s essential service, so that our customers, communities and the environment can thrive. Our approach to sustainability runs through everything we do, from the way we invest in infrastructure and run our finances, to the way we serve our customers and look after the natural environment.

In addition to being our first green bond in the Euro market, the transaction also delivered on one of our key financing objectives which is to diversify our sources of funding, as evidenced by a book that was overwhelmingly dominated by new investors. So, thank you for your support, advice and delivering a successful outcome.“

This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. NatWest Markets does not undertake to update you of such changes.  It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does NatWest Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other NatWest Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. NatWest Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does NatWest Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on NatWest Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.

This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. NatWest Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

NatWest Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. NatWest Markets N.V. is incorporated with limited liability in the Netherlands, authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, the Netherlands. Branch Reg No. in England BR001029. NatWest Markets Plc is, in certain jurisdictions, an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is, in certain jurisdictions, an authorised agent of NatWest Markets Plc. NatWest Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through NatWest Markets Securities Inc., a FINRA registered broker-dealer (, a SIPC member ( and a wholly owned indirect subsidiary of NatWest Markets Plc.

Copyright 2022 © NatWest Markets Plc. All rights reserved.