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Severn Trent PLC on Friday proposed ‘record’ levels of investment in its new five-year business plan for April 1, 2025 to March 31, 2030. The water utility said the plan includes £12.9 billion total expenditure across its network, including £5.0 billion of investment focused on enhancing capacity and service beyond current levels. Severn Trent said it would be a ‘sustainability-led’ plan including a 30% reduction in storm overflow spills, a 30% reduction in pollution, and a 16% reduction in leakage. The business plan will be submitted in full to the UK Water Services Regulation Authority on Monday. ‘By 2030 we will have transformed our network to provide our customers with the very best service. At the heart of this ambition is a commitment to a sustainable future - from healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth,’ said Chief Executive Liv Garfield. Separately, the company proposed an equity issue to raise £1 billion to support this investment while also maintaining ‘strong financial resilience’. Severn Trent said the issue will raise around £500 million through a placing to institutional investors, £500 million through an investment from Qatar Investment Authority, and around €8 million through retail investors in the UK. It added that certain directors would subscribe for shares totalling £275,000. Qatar Investment Authority is the sovereign wealth fund of Qatar. Severn Trent shares were up 2.1% to 2,313.00 pence early Friday in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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