Severn Trent raises £250m for green projects

Severn Trent is raising £250m in equity to fund six projects agreed with the regulator to improve water quality and the environment.

The FTSE 100 water company said the price of the share offer would be worked out in a bookbuild starting on Wednesday morning. The company will place shares with investors and offer shares to retail investors. Certain directors and executives will take part in the offer.

Severn Trent said the projects would decarbonise water supplies, speed up environmental improvements, create bathing quality rivers, replace lead supply pipes, increase flood resilience, and instal smart meters for customers in its region.

"In aggregate, the projects represent a significant incremental investment opportunity over the next four years and importantly will supplement the work Severn Trent does now in its region, providing employment, resilience and an improved natural environment," Severn Trent said.