Commentary & Deal Flow

IPTs: 9yr: UKT+150a
Guidance: 15yr: UKTI+160/165bp

• Issuer: South West Water Finance Plc
• Ticker: PNNLN
• Country: GB
• Issuer LEI: 213800OV68U446W4NV89
• Guarantor: South West Water Limited
• Expected Issue Rating: Baa1/A- (Moody's/Fitch)
• Format: Reg S, Bearer, NGN
• Ranking: Senior Unsecured
• Settlement: 16-Jul-26 (T+7)
• Maturity / Tenor:
• • 9yr: 16-Jul-35
  • 15yr: 16-Jul-41
• Size:
• • 9yr: £ Benchmark
  • 15yr: £50-100m
• IPT/Guidance:
• • 9yr: IPT UKT+150bps area
  • 15yr: Guidance UKTI+160-165 bps
• Benchmark:
• • 9yr: UKT 0.625% due Jul-35
  • 15yr: UKTI 0.125% due Aug-41
• Coupon:
• • 9yr: Fixed, Annual, Act/Act (ICMA), payable in arrear on each Interest Payment Date
  • 15yr: Index-Linked to UK RPI, Semi-annual, Act/Act (ICMA), payable in arrear on each Interest Payment Date
• Interest Payment Dates:
• • 9yr: 16 July in each year, from (and including) 16-Jul-27 up to (and including) the Maturity Date
  • 15yr: Each 16 July and 16 January, from (and including) 16-Jan-27 up to (and including) the Maturity Date
• Early Redemption:
• • 9yr: Make-Whole Call (15% of reoffer spread), Event Put Option at Par, 3m Par Call
  • 15yr: Make-Whole Not Applicable, Event Put Option at par, subject to adjustment by reference to the Index Ratio in accordance with Condition 6 (no Minimum or Maximum Optional Redemption Amount)
• ISIN:
• • 9yr: XS3433852269
• Documentation: £2,500,000,000 Euro Medium Term Note Programme including the Base Prospectus dated 21-Aug-25 (the “Base Prospectus”), as supplemented on 01-Dec-25 and 18-Jun-26 (together, the “Supplements”)
• Denominations: £100k x £1k
• Listing: Main Market of the London Stock Exchange
• Governing Law: English Law
• Selling Restrictions: Reg S, Cat 2, TEFRA D, No Sales to EEA or UK Retail. As further set out in the Base Prospectus
• Use of Proceeds: An amount equal to the net proceeds from the issue will be allocated by the Issuer to finance or refinance, in whole or in part, new or existing eligible projects as set out in the Group’s Sustainable Financing Framework and as more fully described in the Base Prospectus
• Target Market / PRIIPS: Manufacturer target market (EU MiFID and UK MiFIR Product Governance) is eligible counterparties and professional clients only (all distribution channels) / No EEA PRIIPs KID or UK CCI disclosure document required by the FCA Product Disclosure Sourcebook (DISC) as not available to EEA or UK retail investors.
• Advertisement: The Base Prospectus and the Supplements are available at https://data.fca.org.uk/artefacts/NSM/Portal/NI-000127644/NI-000127644.pdf and the Final Terms (when published) will be available at https://www.pennon-group.co.uk/investor-information/debt-investors
• Active Bookrunners: BNP Paribas, CIBC Capital Markets, NatWest, SMBC (B&D)
• Passive Bookrunners: Bank of China
• Stabilisation: Relevant stabilisation regulations, including FCA/ICMA apply
• Timing: Books open, today’s business