Thames Water has requested up to £3bn worth of new financing from its creditors as part of a move to extend its liquidity runway.

The water company stated it was seeking to borrow funds to keep operating until October next year and avoid renationalisation.

Thames Water has launched a consent process for a transaction support agreement (TSA) in connection with a liquidity extension transaction and related STID Proposals.

The company said the move would allow it to progress its equity raise process and a holistic recapitalisation transaction as well as to complete the final determination process, including a CMA appeal if necessary.

The launch of the TSA follows engagement with committees of secured creditors together representing a substantial majority of Thames Water’s secured debt.

Thames Water CEO, Chris Weston, said the move would put water company onto a “more stable financial footing”.

“This step forward comes on top of our performance improvements which were recently recognised by Ofwat,” Weston said.

“We are working closely with and have the support of our creditors, enabling Thames to continue to implement our turnaround plan so that we can deliver better results for our customers and the environment whilst seeking to attract new capital into the business.

“In the meantime, our teams on the ground continue to supply our services to our 16 million customers every day.”

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