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United Utilities Group PLC

Capital/Financing Update Feb 12, 2019

4878_rns_2019-02-12_34368ec9-c365-4751-b6ae-1386d8a57148.pdf

Capital/Financing Update

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FINAL TERMS

8 February 2019

MiFID II product governance / Professional investors and eligible counterparties only target market – Solely for the purposes of each manufacturer's product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties and professional clients only, each as defined in Directive 2014/65/EU (as amended, "MiFID II"); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the manufacturers' target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturers' target market assessment) and determining appropriate distribution channels.

UNITED UTILITIES WATER FINANCE PLC LEI: 213800313INX42GDLR44 Issue of GBP 250,000,000 2.625 per cent. Fixed Rate Notes due 2031 unconditionally and irrevocably guaranteed by UNITED UTILITIES WATER LIMITED under the EUR 7,000,000,000 Euro Medium Term Note Programme

PART A - CONTRACTUAL TERMS

Terms used herein shall be deemed to be defined as such for the purposes of the Conditions set forth in the Offering Circular dated 21 November 2018 which constitutes a base prospectus for the purposes of the Prospectus Directive (the "Offering Circular"). This document constitutes the Final Terms of the Notes described herein for the purposes of Article 5.4 of the Prospectus Directive and must be read in conjunction with the Offering Circular. Full information on the Issuer, the Guarantor and the offer of the Notes is only available on the basis of the combination of these Final Terms and the Offering Circular. The Offering Circular has been published on the website of the Regulatory News Service operated by the London Stock Exchange at http://www.londonstockexchange.com /news/marketnews/rns/rns.htm.

1. (a) Issuer: United Utilities Water Finance PLC
(b) Guarantor United Utilities Water Limited
2. (a) Series Number: 70
(b) Tranche Number: 1
(c) Date on which the Notes will
be consolidated and form a
single Series:
Not Applicable
3. Specified Currency or Currencies: Sterling ("GBP")
4. Aggregate Nominal Amount:
(a) Series: GBP 250,000,000
(b) Tranche: GBP 250,000,000
5. Issue Price: 99.794 per cent. of the Aggregate Nominal Amount
6. (a) Specified Denominations: GBP 100,000 and integral multiples of GBP 1,000 in excess
thereof up to and including GBP 199,000. No Notes in
definitive form will be issued with a denomination above GBP
199,000.
(b) Calculation Amount for Notes
in
definitive
form
(and
in
relation
to
calculation
of
interest for Notes in global
form see Conditions):
GBP 1,000
7. (a) Issue Date: 12 February 2019
(b) Interest Commencement Date: Issue Date
8. Maturity Date: 12 February 2031
9. Interest Basis: 2.625 per cent. Fixed Rate (see paragraph 15 below)
10. Redemption/Payment Basis: Subject to any purchase and cancellation or early redemption,
the Notes will be redeemed on the Maturity Date at 100 per
cent. of their nominal amount
11. Change of Interest Basis: Not Applicable
12. Put/Call Options: Issuer Call (see paragraph 20 below)
13. (a) Status of the Notes: Senior, unsecured
(b) Date approval for issuance
obtained:
5 February 2019
14. Method of Distribution: Syndicated
PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE
15. Fixed Rate Note Provisions Applicable
(a) Rate of Interest: 2.625 per cent. per annum payable annually in arrear on each
Interest Payment Date
(b) Interest Payment Date(s): 12 February in each year from and including 12 February 2020
up to and including the Maturity Date

(c) Fixed Coupon Amount(s) for Notes in definitive form (and in GBP 26.25 per Calculation Amount

relation to Notes in global form
see Conditions):
(d) Broken Amount(s) for Notes in
definitive form (and in relation
to Notes in global form see
Conditions):
Not Applicable
(e) Day Count Fraction: Actual/Actual (ICMA)
(f) Determination Date(s): 12 February in each year
16. Floating Rate Note Provisions Not Applicable
17. Zero Coupon Note Provisions Not Applicable
18. Index Linked
Interest/Redemption
Note Provisions
Not Applicable

PROVISIONS RELATING TO REDEMPTION

19. Notice periods for Condition 9.2 Minimum period: 30 days
Maximum period: 60 days
20. Issuer Call: Applicable
(a) Optional Redemption Date(s): Any date from and including 12 November 2030 to but
excluding the Maturity Date
(b) Optional Redemption Amount: GBP 1,000 per Calculation Amount
(c) If redeemable in part: Not Applicable
(d) Notice periods: Minimum period: 30 days
Maximum period: 90 days
21. Investor Put: Not Applicable
22. Final Redemption Amount: GBP 1,000 per Calculation Amount
23. Early Redemption Amount payable on
redemption for taxation reasons,
indexation reasons or on event of default:
GBP 1,000 per Calculation Amount

GENERAL PROVISIONS APPLICABLE TO THE NOTES

  1. Form of Notes: Bearer Notes

Temporary Global Note exchangeable for a Permanent Global Note which is exchangeable for Definitive Notes only upon an

Exchange Event

25. New Global Notes
("NGN") / New
Safekeeping Structure ("NSS"):
NGN
26. Additional Financial Centre(s): Not Applicable
27. Talons for future Coupons or Receipts to
be attached to Definitive Notes:
No
28. Redenomination applicable: Redenomination not applicable
29. Details Relating to Instalment Notes Not Applicable
DISTRIBUTION
30. (a) If syndicated, names of
Managers:
Barclays Bank PLC
HSBC Bank plc
RBC Europe Limited
(b) Date of Agreement: 8 February 2019
31. Manager: If non-syndicated, name of relevant Not Applicable
Managers: HSBC Bank plc
RBC Europe Limited
(b)
Date of Agreement:
8 February 2019
31. If non-syndicated, name of relevant
Manager:
Not Applicable
32. Whether TEFRA D or TEFRA C rules
applicable or TEFRA rules not applicable:
TEFRA D applicable
33. Prohibition of Sales to EEA Retail
Investors:
Not Applicable
34. Prohibition of Sales to Belgian
Consumers:
Applicable

LISTING AND ADMISSION TO TRADING APPLICATION

These Final Terms comprise the final terms required to list and have admitted to trading the issue of Notes described herein pursuant to the EUR 7,000,000,000 Euro Medium Term Note Programme established by United Utilities PLC and United Utilities Water Finance PLC, with obligations under Notes issued by United Utilities Water Finance PLC unconditionally and irrevocably guaranteed by United Utilities Water Limited.

1. LISTING
(a) Listing: London
(b) Admission to trading: Application is expected to be made for the Notes to be
admitted to trading on the London Stock Exchange's
regulated market with effect from the Issue Date.
(c) Estimate of total expenses related to
admission to trading:
GBP 4,500
2. RATINGS
Ratings: The Notes to be issued are expected to be rated:
A3 by Moody's Investors Services Ltd ("Moody's")
A- by S&P Global Ratings Europe Limited ("S&P")
A- by Fitch Ratings Limited ("Fitch")
Each of Moody's, S&P and Fitch is established in the
European Union and is registered under Regulation (EC) No.
1060/2009 (as amended) (the "CRA Regulation")

3. INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE

Save for any fees payable to the Managers, so far as the Issuer is aware, no person involved in the issue of the Notes has an interest material to the offer. The Managers and their affiliates have engaged, and may in the future engage, in investment banking and/or commercial banking transactions with, and may perform other services for, the Issuers, the Guarantor and their affiliates in the ordinary course of business

4. REASONS FOR THE OFFER, ESTIMATED NET PROCEEDS AND TOTAL EXPENSES

(a) Reasons for the offer See "Use of Proceeds" section of the Offering Circular
5. YIELD
Indication of yield: 2.645 per cent. per annum
The yield is calculated at the Issue Date on the basis of the
Issue Price. It is not an indication of future yield

6. HISTORIC INTEREST RATES

Not Applicable

7. OPERATIONAL INFORMATION

benchmarks only)

(a) ISIN: XS1950827078
(b) Common Code: 195082707
(c) CFI: DTFXFB
(d) FISN: UNITED UTILITIE/1EMTN 20310212
(e) Any clearing system(s) other than
Euroclear
and
Clearstream,
Luxembourg and the relevant
identification number(s):
Not Applicable
(f) Delivery: Delivery against payment
(g) Names
and
addresses
of
additional Paying Agent(s) (if
any):
Not Applicable
(h) Intended to be held in a manner
that
would
allow
Eurosystem
eligibility:
Yes. Note that the designation "yes" simply means that the
Notes are intended upon issue to be deposited with one of the
ICSDs as common safekeeper and does not necessarily mean
that the Notes will be recognised as eligible collateral for
Eurosystem monetary policy and intra day credit operations
by the Eurosystem either upon issue or at any or all times
during their life. Such recognition will depend upon the ECB
being satisfied that Eurosystem eligibility criteria have been
met.
8. BENCHMARKS
REGULATION
(Floating Rate
Notes calculated by reference to
Not Applicable

7

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