Southern Water’s owner, MACQUARIE GROUP LIMITED (ASX:MQG), has committed a further £1.2 billion in equity to stabilise the utility’s finances, starting with an initial £655 million and another £545 million expected by the end of the year.
The move is part of a wider package aimed at cutting the firm’s holding company debt from £865 million to £415 million.
The water company, which serves 4.7 million customers across southern England, carries nearly £9 billion in total debt and recently suffered a credit rating downgrade.
This latest cash injection follows £1.65 billion already invested by Macquarie since 2021.
Chief executive Lawrence Gosden said the funds will help finance “the largest growth investment programme in the sector relative to its size”.
He added that there are no dividends planned for the 2025–30 regulatory cycle, and that the package would improve Southern Water’s financial resilience and operational performance.