UK utility company successfully floats £250 million blue bond issuance
**Tideway Issues First UK Corporate Blue Bond to Support Thames Tideway Tunnel**
British utility firm Tideway has made history by issuing the first sterling-denominated blue bond, a significant milestone in sustainable finance. The £250 million, 8-year blue bond is supporting the Thames Tideway Tunnel project, often referred to as London's "super sewer."
The blue bond, issued by Bazalgette Finance Plc, the financing vehicle for Tideway, is a subset of sustainable debt aimed at ocean and water-related environmental projects. It directly links to waterway protection and pollution reduction, aligning with Tideway's main purpose - cleaning the River Thames.
The bond proceeds are dedicated to supporting the Thames Tideway Tunnel’s mission, particularly as the project transitions from construction to operational phase. This transition is crucial in intercepting millions of tonnes of untreated sewage that would otherwise pollute the River Thames.
Lloyds Banking Group played a crucial role in the bond issuance, acting as the Global Coordinator. They supported the structure, documentation, and investor communication to align with the project's transition from construction to active environmental stewardship.
As of May 2025, the Thames Tideway Tunnel has already diverted over 7 million cubic metres of raw sewage from polluting the River Thames, contributing significantly to improving water quality and ecosystem health in the Thames Estuary and beyond.
This pioneering bond marks a first for UK corporate issuers in sterling, symbolizing innovation in the capital markets related to environmental sustainability and specifically blue finance. It also highlights the role of capital markets in advancing environmental goals and the UK’s commitment to nature-positive and low-carbon initiatives.
The NZI Climate Solutions Summit, scheduled for September 11, 2025, in London, will provide more information about the blue bond and other sustainable finance initiatives. For further details about the summit, please visit [this link](https://www.nziclimate.com/summit).
[1] Tideway, Press Release: Tideway issues first sterling-denominated blue bond (2025) [2] Lloyds Banking Group, Press Release: Lloyds supports Tideway in issuing first sterling-denominated blue bond (2025) [3] Thames Tideway Tunnel, About the Thames Tideway Tunnel (n.d.) [4] Environment Agency, Thames Tideway Tunnel - Super Sewer (n.d.)
The blue bond, issued by Bazalgette Finance Plc, is a significant step in the field of blue finance, a subset of sustainable debt aimed at ocean and water-related environmental projects. This financial instrument, linked to the Thames Tideway Tunnel project, directly contributes to the protection of waterways and the reduction of pollution, aligning with the project's focus on cleaning the River Thames.
