Affinity Water - Agreed Sale

Affinity Water Programme Finance Limited (the "Company") 

£14.2 million of 3.625% Sterling Denominated Fixed Rate Bonds due 2022

£10 million of 1.024% Sterling Denominated Retail Price Index-Linked Bonds due 2033

£250 million of 4.5% Sterling Denominated Fixed Rate Bonds due 2036

£85 million of 3.278% Sterling Denominated Fixed Rate Bonds due 2042

£190 million of 1.548% Sterling Denominated Retail Price Index-Linked Bonds due 2045

issued by the Company and guaranteed by Affinity Water Limited ("Affinity Water")

2 May 2017

Affinity Water Acquisitions (Investments) Limited - Agreed Sale

The Company has been informed that the ultimate shareholders of Affinity Water have reached an agreement to sell 100% of their indirect interest in the Company to a consortium comprising Allianz Capital Partners on behalf of Allianz Group, HICL Infrastructure Company Limited (the listed infrastructure investment company, advised by InfraRed Capital Partners Limited) and DIF.

The transaction is expected to complete in May 2017.

Affinity Water and the Company continue to operate in the ordinary course of business and there is no expectation that the sale will result in any changes at an operational level at Affinity Water.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

Any queries should be directed to Tim Monod by email on tim.monod@affinitywater.co.uk.

Tim Monod, Company Secretary

Affinity Water Finance (2004) PLC

Tamblin Way

Hatfield

Hertfordshire

AL10 9EZ

Phone: +44 1707277196

DISCLAIMER - INTENDED ADDRESSEES

This announcement is a communication to the market. Nothing in this announcement constitutes an offer of securities for sale in the United States or any other jurisdiction. This announcement does not constitute a prospectus or a prospectus equivalent document.

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