Yorkshire Water launches green bond

Yorkshire Waters LSEG welcome ceremony
Yorkshire Waters LSEG welcome ceremony
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Yorkshire Water has listed its first sustainability bond on London Stock Exchange’s dedicated Green Bond Segment.

The £350m issuance with a tenure of 22 years will be admitted to the Main Market on April 18.

The bond was five times oversubscribed and investors placed more than £1.9bn of bids for Yorkshire Water’s £350m 22-year senior secured note.

Liz Barber, director of finance and regulation at Yorkshire Water, said: "Investors have responded very positively to our sustainable finance framework and the success of this issue confirms that we've taken the right approach.

"This is the first step in our plans to progressively move our debt portfolio into the framework and shows Yorkshire Water's commitment to embed sustainability across all our operations."

Green bonds allow companies to raise money for projects that bring environmental benefits.

Darko Hajdukovic, head of fixed income, funds & analytics for UK Primary Markets at London Stock Exchange, said: “We congratulate Yorkshire Water on the successful listing of its first sustainability bond on London Stock Exchange’s dedicated Green Bond Segment.

"This milestone also represents the first time 100 active green bonds have been listed on this segment. London is one of the leading global centres for green finance welcoming companies from around the world. The growth of this market reflects the increasing demand for issuers and investors choosing to incorporate sustainable investment practices into their portfolios.”

London Stock Exchange has worked with investors and companies to help them switch to a low-carbon and sustainable economy for over a decade.

It has seen significant growth in green bond issuance and 2018 was a record year for green bond issuance. 36 new green bonds listed on London Stock Exchange in 2018, a 25 per cent increase on 2017, collectively raising over £6.25bn.