Lenders offer over $4.4 billion equity injection to rescue Thames Water, Sky News reports

2026-03-14 - 18:54

Lenders to Thames Water have offered to inject 3.35 billion pounds ($4.43 billion) ​of new equity into Britain’s biggest water supplier as part ‌of an accelerated effort to secure a rescue deal, Sky News reported on Saturday. The increased capital injection was included in a revised proposal submitted ​to industry regulator Ofwat within the last 10 days, ​according to the report. The offer from creditors including Invesco, ⁠Elliott Management and Silver Point Capital comes as Thames Water ​hovers on the brink of temporary nationalisation, with hundreds of millions ​of pounds of new funding required by the end of this month, the report added. In exchange, creditors would receive a minimum 10% equity stake in the ​recapitalised company, Sky News reported in January. Reuters could not immediately ​verify the report. Invesco, Elliott Management and Silver Point Capital did not immediately ‌respond ⁠to a Reuters request for comment. A Thames Water spokesperson declined to comment on the Sky News report but said the company was “working constructively with stakeholders” to deliver a market-led recapitalisation in the ​best interests of ​customers and the ⁠environment, adding it remained hopeful of reaching an agreement. The company, which serves about 16 million customers, ​has become emblematic of the water sector’s failure, drawing ​criticism ⁠over sewage pollution while grappling with nearly 20 billion pounds of debt. If a long-term restructuring agreement is not secured, Thames Water is expected ⁠to be ​placed into the government’s special administration ​regime, effectively a form of temporary nationalisation. ($1 = 0.7563 pounds)