Severn Trent exploits 13 year arb despite RPI cloud.

The article reports that the British water company Severn Trent has re-entered the bond market in 2013. Analysts claim that the only potential hindrance to Severn's issue is the news that the British government is planning to change the retail price index (RPI) to save money on inflation-linked payments. Severn's benchmark January 2026 bond was launched at 155bp-160bp over the five percent March 2025 Gilt. Succeeding announcements that the RPI will remain unchanged reportedly helped the issue.