Thames Water Races to Secure Equity Investment as Debt Rises

  • Debt rose 7% to £14.7 billion in first half of financial year
  • More equity is investment in Thames is due from March

Thames Water is seen by the government as too big to fail.

Photographer: Jose Sarmento Matos/Bloomberg
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The UK’s biggest water and sewage company is running out of time to convince shareholders it has done enough to warrant receiving an additional £750 million ($946 million) in equity to deliver its turnaround plan.

Thames Water Ltd. on Tuesday reported that its debt pile rose 7% to £14.7 billion in the first half of the financial year as a result of soaring inflation. Scrutiny over the stability of its financing structure recently forced the utility to slim down a program seeking to improve its performance.