Severn Trent in bid to raise £250m to fund green projects
Utilities giant Severn Trent has today revealed plans to raise £250m through a share issue.
The company says the cash will be used to fund six contracts it won from Ofwat to drive long-term environmental benefits and create 2,500 jobs across the Midlands.
A statement from the company said: “Collectively, the projects support the wider national agenda on climate change and the need for greater water supply security. They will support long-term growth through decarbonising the supply of water, accelerating environmental improvements in the Severn Trent region, creating bathing quality rivers, replacing lead supply pipes, building a sustainable flood-resilient community, and installing smart meters for customers. In aggregate, the projects represent a significant incremental investment opportunity over the next four years.”
The news of the cash call comes as Severn Trent announced flat revenues for the year to March 31 with revenues down slightly at £1.83bn. Profits fell by 17% on the back on a renbasing of tariffs and the impact of Covid-19.
