Owner of South West Water Pennon Group has formally announced the launch of its fully underwritten rights issue to raise £490 million as part of a comprehensive financing package.

The proceeds of the rights issue are expected to be used to fund increased investment in the Group's water businesses.

On Friday Pennon issued a second supplementary prospectus to the Base Prospectus it published on 23 July 2024 for a £2.5 billion Euro Medium Term Note Programme established by South West Water Finance PLC.

South West Water is the guarantor for payment of all amounts due in respect of Notes issued by South West Water PLC.

The update also includes the incorporation of the Group’s acceptance of Ofwat’s Final Derminations into the Base Prospectus.

South West Water operates through the South West Water, Bournemouth Water, Bristol Water and Isles of Scilly brands. In January 2024 Pennon Group also announced the acquisition of SES Water.

The Pennon Group also owns three national non-household water retail businesses: Pennon Water Services (an 80% holding), Water2Business (a 30% holding) and SES Business Water. Pennon Power, the Group’s renewables investment arm, is currently developing four renewable projects across the UK.