When AWG was acquired by investors in 2006, it became the ultimate parent company of the Group. It is a Jersey-registered company, but it is UK tax resident and, as such, is liable for tax in the UK. All companies in the AWG Group holding structure are UK tax resident and liable for tax in the UK. Osprey Holdco Limited has issued debt that is held by our shareholders in proportion to their respective shareholdings, and they are entitled to receive an interest payment on the debt annually.
The aim of the Group’s financing strategy for AMP7 is to reduce AWS gearing in order to enhance and protect its current solid investment-grade credit ratings. This approach has been designed to enable AWS to borrow at lower rates in order to support the investments that customers have asked us to make. During the 2021/22 financial year, three new UK companies (Aigrette Financing Limited, Osprey Investco Limited and Aigrette Financing (Issuer) Plc) were inserted into the company structure to help deliver the AMP7 financing strategy.
The insertion of these companies has resulted in a two-tier financing structure sitting above AWS in the AWG Group and enabled the Group to increase its equity investment in AWS.
AWG Group companies
During the year, Aigrette Financing Limited, and its newly incorporated UK subsidiary, Aigrette Financing (Issuer) Plc, borrowed funds externally and flowed the cash to AWS as increased equity.
Osprey Investco Limited, Osprey Acquisitions Limited and Osprey Acquisitions Limited’s subsidiary, Anglian Water (Osprey) Financing Plc, together comprise AWG’s ‘midco’ financing group. Funds raised by the ‘midco’ financing group were used to increase the equity investment in AWS and for other purposes.
AWG Parent Co Limited, AWG (UK) Holdings Limited and AWG Group Limited are holding companies that were set up when AWG was a listed group. They are all 100 per cent owned, and currently none of these companies has any external debt. They are all registered in the UK and UK tax resident.
Anglian Venture Holdings is the investment and management vehicle responsible for the Anglian Water Group’s commercial businesses across the UK and Ireland, with over £100m invested to date. These businesses have a combined turnover in excess of £500 million and offer customers a wealth of expertise in the water industry and infrastructure related sectors. Drawing on this experience, Anglian Venture Holdings works to add value through water conservation, innovative engineering and competitive pricing.