Bristol Water has secured a £50m finance facility from HSBC’s South West corporate banking team to support its £260m, five-year capital investment programme.
Under the arrangement HSBC is providing a £50m, five-year revolving credit facility, which includes the refinancing of an existing £15m facility.
The deal was led by HSBC senior corporate banking manager Sharon Daw, based at HSBC’s West and Wales Corporate Centre in Bristol, alongside Ben Handler and Will Roberts from HSBC's corporate capital origination team.
Bristol Water’s capital investment programme, which started in 2010, aims to protect and improve the water supply for customers. The largest in the company’s history, the programme is also expected to drive significant growth in the firm’s regulated capital value.
The programme of works includes improving mains capacity to meet rising demand for water due primarily to population growth, inst
alling 8km of new water mains and a new pumping station to protect water supplies to 185,000 customers in central and west Bristol, significantly increasing the level of water main and meter replacement across the region, modernising some of the company’s largest and most-important pumping stations, and reducing leaks by 10%.
In the 12 months to March 31, Bristol Water’s capital expenditure rose by £23.9m to £60.4m compared to the previous year.
The company supplies water to more than 1.2m people and businesses in an area of almost 2,400 sq km across Gloucestershire, Somerset and Bristol.
HSBC head of corporate for West and Wales Mark Bennett said: “HSBC is delighted to support this long-standing customer as it progresses with this important project.”
He said the deal showed the bank was open for business regardless of the size of the corporate customer.
“We urge businesses to come and talk to us about their plans as we are in a strong position to help,” he said.
Bristol Water finance director Miquel Anglada added: “This significant investment programme is allowing us to make essential improvements for our customers, by upgrading our water storage and treatment facilities, our pumping stations and our network of water mains, so that we will continue to deliver high-quality drinking water and meet growing demand for water in the Bristol Water region.
“We’d like to thank the HSBC team in Bristol for the role they are playing in this programme.”
