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Lenders offer over $4.4 billion equity injection to rescue Thames Water, Sky News reports
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Lenders offer over $4.4 billion equity injection to rescue Thames Water, Sky News reports
Mar 14, 2026 6:51 AM

March 14 (Reuters) - 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 ( IVZ ), 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 ( IVZ ),

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)

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