ESG back in focus as Severn Trent order books bulge

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By Mike Turner
26 May 2020

Severn Trent, the UK water utility, achieved blowout demand on Tuesday for its sustainable bond, as bankers say the focus in the high grade market is shifting from crisis mode back to socially responsible debt.

Severn Trent, rated Baa1/BBB+, opened books on a June 2040 sterling trade at 160bp-165bp over Gilts. 

By the time the deal size was set at £300m at guidance of 145bp-150bp over, demand for the trade had hit £1bn. 

Orders had hit £1.2bn when the deal was launched at the tight ...

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