Through volatile markets, Centrus advised Affinity Water (“AW”) on the successful completion of a large CPI hedging programme across multiple tranches and a wide range of counterparties.
Affinity Water is owned by Allianz, HICL and DIF, and is the largest water-only supplier in the UK, providing on average 900 million litres of water each day to over 3.6 million people in parts of London and the south of England.
This transaction focused on moving a portion of the debt portfolio to CPI-linked to better align with the movement of RCV to CPIH linkage, whilst also reducing interest costs over the subsequent regulatory periods.
As part of the hedging process, Centrus assisted Affinity Water in the below areas:
1. Analysis and structuring of hedging options
2. Introduction of new hedging counterparties
3. Onboarding of new counterparties
4. Management of trade execution process
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