Assured Guaranty Wraps £75 million CPI-Linked Bond Issue for Portsmouth Water Limited
LONDON–(BUSINESS WIRE)–Assured Guaranty UK Limited (AGUK)* announced that it has guaranteed principal and interest payments on a £75 million bond issued by Portsmouth Water Limited, a regulated water utility.
This issuance forms part of a wider financing package to fund the construction of the Havant Thicket Reservoir, the first new reservoir to be built in South East England since the 1970s. It will serve approximately 160,000 customers once completed, which is expected in 2029.
The 14-year CPI-linked bond was issued on 29 March 2023 and privately placed with two UK investors. As a result of the financial guarantee provided by AGUK through its Transferrable Custody Receipts (TCR) program, the TCRs are rated AA by S&P Global Ratings.
Suparna Dar, Managing Director, AGUK, commented:
“We are pleased to be able to provide Assured Guaranty’s financial guarantee to support funding for the construction of a key infrastructure project in the UK water sector, alongside a wider banking group and the UK Infrastructure Bank. We believe our long-term wrap provides a cost-effective solution to support major construction projects in the water sector over the coming years.”
Dominic Nathan, Senior Managing Director, AGUK, commented:
“The closing of this transaction represents our return to the primary market in the UK water utility sector, where we have been active continually in the secondary market in recent years. It takes Assured Guaranty’s total par underwritten in this sector close to £9.5 billion, reflecting our depth of experience and long-standing relationships with UK water utilities.”
AGUK guarantees timely payment of scheduled principal and interest throughout the life of the bonds, in accordance with the terms of its financial guarantee.
Assured Guaranty’s legal advisers on the transaction were Linklaters LLP. Portsmouth Water were advised by Centrus and Allen & Overy LLP.
IMPORTANT NOTICE
All of the securities have been sold, and this announcement is for information purposes only. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (“Securities Act”), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States.
* AGUK (company number 2510099) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. AGUK provides its financial guarantee together with a co-guarantee from its affiliate Assured Guaranty Municipal Corp. (AGM). Both AGUK and AGM are subsidiaries of Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty). Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance (including infrastructure) and structured finance markets, and also provides asset management services. AGL is a publicly traded (NYSE: AGO) Bermuda-based holding company. More information on AGL and its subsidiaries can be found at AssuredGuaranty.com.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from difficulties with the execution of Assured Guaranty’s business strategy; reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured;; adverse developments in Assured Guaranty’s guaranteed portfolio; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of 6 April 2023. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contacts
Investor Relations:
Robert Tucker, +1 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com
Media:
Ashweeta Durani, +1 212-408-6042
Vice President, Corporate Communications
adurani@agltd.com
