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Centrus advises Yorkshire Water on the extension of mandatory breaks on £79.1m of inflation linked swaps

Centrus continues its longstanding relationship with Yorkshire Water (“YW”) with the successful execution of mandatory break extensions across £79.1m notional of the inflation linked swap’s portfolio with mandatory breaks in 2023.

A cost-effective approach was taken, with an efficient use of bank capital employed. The structure extends mandatory breaks by 5 years to avoid maturity concentrations and limit costs.

YW have again illustrated their proactive and prudent risk management approach to addressing mandatory breaks well in advance of due dates and with strong continued support from its relationship banks.

As part of this derivatives restructuring, Centrus assisted YW in 3 main areas:

  • Analysis and structuring of options
  • Execution of the subsequent restructuring solutions
  • Management of the process across parties

Further information on this transaction can be accessed through the RNS announcement available on the London Stock Exchange website.