Mark Freshney's questions to PNN.L leadership • H1 2023
Question
Mark Freshney asked for details on the post-period debt refinancing, questioning the value-generation rationale of swapping index-linked debt for fixed-rate debt in a high-rate environment.
Answer
Executive Paul Boote explained the strategy was twofold: swaps were executed to manage P&L volatility rather than for immediate value, while the repayment of a GBP 40 million Bristol Water bond generated a GBP 20 million gain due to favorable market conditions at the time of termination.