LIQUIDITY UPDATE: LAUNCH OF STID PROPOSAL TO WAIVE CERTAIN RATINGS RELATED CONDITIONS PRECEDENT

SW (FINANCE) I PLC

SW (Finance) I PLC

15 July 2025

SW (FINANCE) I PLC (the "Company)

SOUTHERN WATER SERVICES LIMITED ("Southern Water")

Southern Water has today launched a STID Proposal requesting Majority Creditor consent for the waiver of the certain requirements set out in the Condition Precedent Agreement originally dated 3 July 2003 (as from time to time amended and/or restated).

The conditions precedent Southern Water is requesting to be waived are (a) the requirement that any Class A Unwrapped Bonds that may be issued between the date of the STID Proposal and the earlier of (i) 28 November 2025 and (ii) the date in November 2025 on which Southern Water receives £505m of the Initial AMP8 Equity Commitment (the "Relevant Period") must be rated at least A- by S&P, A3 by Moody's and A- by Fitch, and instead for such Class A Unwrapped Bonds to be rated at least Investment Grade by any two of S&P, Moody's and Fitch; and (b) the requirement for the Company to provide in respect of any increase during the Relevant Period in the nominal amount of the Company's £6 billion guaranteed bond programme (the "Programme") a confirmation from S&P, Moody's and Fitch that there has no been no change in the ratings assigned by them to the Programme as a result of the increase.

The STID Voting Date under the STID Proposal is no later than 29 July 2025.

For further information, please contact Stuart Ledger (Group CFO) at:

Address:          Southern House, Yeoman Road, Worthing, BN13 3NX, United Kingdom

Tel:                  01903 272 611

Email:              [email protected]

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