Bondholders approve closure of Yorkshire Water’s Cayman companies

The Cayman firms were said to have been created due to the financial structure of its parent company

Yorkshire Water said it received an “unequivocal vote of approval” from its bondholders to close three of its Cayman Islands subsidiaries.

More than 98% of its bondholders and 100% of US Private Placement (USPP) noteholders voted in favour of the changes.

That means £3 billion of bonds and USPP notes can now be transferred to Yorkshire Water’s parent company Kelda Group, which is due to take place in July.

The water firm said the Cayman companies were originally created for technical reasons due to the financial structure of the Kelda Group.

Director of Finance, Markets and Regulation Liz Barber said: “This strong support from bondholders means that we can immediately press ahead in transferring the bonds to the UK and improve the transparency of our financial structure.”

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