Thames Water Secures 75% Class A Bondholder Support for £3 Billion Emergency Funding, Increasing Debt and Bills

Nov 13, 2024, 08:21 AM

Thames Water has secured crucial backing from approximately 75% of its Class A bondholders for a £3 billion emergency funding deal aimed at stabilizing the company amid ongoing financial difficulties. The support from creditors is seen as a significant step forward in the utility's efforts to implement its rescue plan, which is expected to result in increased debt, higher interest payments, and potentially elevated bills for consumers. The involvement of hedge funds and private equity firms has also been noted, as they are reportedly looking to gain control of the company, anticipating a government bailout in the process. This development comes at a time when markets are closely monitoring broader economic indicators, including US inflation rates.