Document:

exhibit4c-7

Exhibit 4(c)-7 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Sixth Supplemental Indenture]  Deutsche Bank Trust Company Americas,  as Trustee  By:   Name:  Title:  By:   Name:  Title:  DocuSign Envelope ID: 153A306D-C99C-444B-A17A-604E4B8BB81F Luke Russell Assistant Vice President Chris Niesz Vice Presidentexhibit4ll-8

1  WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC  (incorporated and registered with limited liability in England and Wales under registration number  02366923)  and  WESTERN POWER DISTRIBUTION (SOUTH WALES) PLC  (incorporated and registered with limited liability in England and Wales under registration number  02366985)  and  WESTERN POWER DISTRIBUTION (SOUTH WEST) PLC  (incorporated and registered with limited liability in England and Wales under registration number  02366894)  and  WESTERN POWER DISTRIBUTION (WEST MIDLANDS) PLC  (incorporated and registered with limited liability in England and Wales under registration number  03600574)  £4,000,000,000  Euro Medium Term Note Programme  Under this £4,000,000,000 Euro Medium Term Note Programme (the Programme), Western Power  Distribution (East Midlands) plc (WPDE), Western Power Distribution (South Wales) plc (WPD South  Wales), Western Power Distribution (South West) plc (WPD South West) and Western Power  Distribution (West Midlands) plc (WPDW and, together with WPDE, WPD South Wales and WPD  South West, the Issuers, and each, an Issuer) may from time to time issue notes (the Notes)  denominated in any currency agreed between the Issuer of such Notes (the Relevant Issuer) and the  relevant Dealer (as defined below).  The maximum aggregate nominal amount of all Notes from time to time outstanding under the  Programme will not exceed £4,000,000,000 (or its equivalent in other currencies calculated as described  in the amended and restated dealer agreement dated 12 August 2019, as amended or supplemented from  time to time, the Dealer Agreement), subject to increase as described in this Prospectus.  The Notes may be issued on a continuing basis to one or more of the Dealers specified under  “Description of the Programme” and any additional Dealer appointed under the Programme from time  to time by the Relevant Issuers (each a Dealer and together the Dealers), which appointment may be  for a specific issue or on an ongoing basis. References in this Prospectus to the relevant Dealer shall,  in the case of an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to all  Dealers agreeing to subscribe such Notes.  Application has been made to the Financial Conduct Authority (the FCA) in its capacity as competent  authority for Notes issued under the Programme during the period of 12 months from the date of this  Prospectus to be admitted to the official list of the FCA (the Official List) and to be admitted to trading  on the London Stock Exchange’s (the London Stock Exchange) regulated market. The Prospectus has  been approved by the FCA as competent authority under Regulation (EU) 2017/1129 (as amended or  superseded) (the Prospectus Regulation) and such approval should not be considered as an  endorsement of the Issuers or the quality of the Notes that are the subject of this Prospectus. The FCA  only approves this Prospectus as meeting the standards of completeness, comprehensibility and  consistency imposed by the Prospectus Regulation. Investors should make their own assessment as to  the suitability of investing in the Notes.  Exhibit (4)ll-8 

 

2  References in this Prospectus to Notes being listed (and all related references) shall mean that such  Notes have been admitted to trading on the London Stock Exchange’s regulated market and have been  admitted to the Official List. The London Stock Exchange’s regulated market is a regulated market for  the purposes of Directive 2014/65/EU (as amended or superseded) (MiFID II).  Notice of the aggregate nominal amount of the Notes, interest (if any) payable in respect of the Notes,  and the issue price of the Notes and certain other information which is applicable to each Tranche (as  defined under “Terms and Conditions of the Notes”) of the Notes will (other than in the case of Exempt  Notes, as defined below) be set out in a separate document containing the final terms for that Tranche  (Final Terms) which, with respect to the Notes to be admitted to the Official List and admitted to  trading by the London Stock Exchange on the regulated market, will be delivered to the FCA and the  London Stock Exchange on or before the date of issue of the Notes of such Tranche. Copies of Final  Terms in relation to Notes to be listed on the London Stock Exchange will also be published on the  website of the London Stock Exchange through a regulatory information service. In the case of Exempt  Notes, notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of the Notes,  and the issue price of the Notes and certain other information which is applicable to each Tranche will  be set out in a pricing supplement document (the Pricing Supplement). In this Prospectus, any  reference to Final Terms shall, in the case of Exempt Notes, be construed as a reference to the relevant  Pricing Supplement.  The Programme provides that the Notes may be listed or admitted to trading, as the case may be, on  such other or further stock exchange(s) or regulated or unregulated markets as may be agreed between  the Relevant Issuer, the Note Trustee (as defined below) and the relevant Dealer(s). The Relevant Issuer  may also issue unlisted Notes and/or Notes not admitted to trading on any regulated or unregulated  market (Exempt Notes). The FCA has neither approved nor reviewed information contained in this  Prospectus in connection with Exempt Notes.  Each Series (as defined in “Overview of the Programme”) of Notes in bearer form will be represented  on issue by a temporary global note in bearer form (each a temporary Global Note) or a permanent  global note in bearer form (each a permanent Global Note). Notes in registered form will be  represented by registered certificates (each a Certificate), one Certificate being issued in respect of  each Noteholder’s entire holding of Registered Notes of one Series (a Global Certificate). If the global  notes (the Global Notes and each a Global Note) are stated in the applicable Final Terms to be issued  in new global note (NGN) form they are intended to be eligible collateral for Eurosystem monetary  policy and, the Global Notes will be delivered on or prior to the original issue date of the relevant  Tranche to a common safekeeper (the Common Safekeeper) for Euroclear Bank SA/NV (Euroclear)  and Clearstream Banking S.A. (Clearstream, Luxembourg). Registered Notes issued in global form  will be represented by registered global certificates (Global Certificates). If a Global Certificate is held  under the New Safekeeping Structure (the NSS) the Global Certificate will be delivered on or prior to  the original issue date of the relevant Tranche to a Common Safekeeper for Euroclear and Clearstream,  Luxembourg.  Global Notes which are not issued in NGN form (Classic Global Notes or CGNs) and Global  Certificates which are not held under the NSS will be deposited on the issue date to of the relevant  Tranche with a common depositary on behalf of Euroclear and Clearstream, Luxembourg (the Common  Depositary).  The provisions governing the exchange of interests in Global Notes for other Global Notes and  definitive Notes are described in “Form of the Notes”.  The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended  (the Securities Act) and are subject to United States tax law requirements. The Notes are being offered  outside the United States in accordance with Regulation S under the Securities Act (Regulation S), and  may not be offered, sold or delivered within the United States or to, or for the account or benefit of,  U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration  

 

3  requirements of the Securities Act. See “Form of the Notes” for a description of the manner in which  Notes will be issued.  Each of the Issuers has been rated by Moody’s Investors Service Limited (Moody’s) and/or Standard  & Poor’s Credit Market Services Europe Limited (S&P). Each of Moody’s and S&P is established in  the European Union and registered under Regulation (EC) No. 1060/2009 (as amended or superseded)  (the CRA Regulation). As such each of Moody’s and S&P is included in the list of credit agencies  published by the European Securities and Markets Authority (ESMA) on its website (at  http://www.esma.europa.eu/page/List-registered-and-certified-CRAs) in accordance with the CRA  Regulation. Notes issued under the Programme may be rated or unrated by any one or more of the rating  agencies referred to above. Where a Tranche of Notes is rated, such rating will be disclosed in the Final  Terms and will not necessarily be the same as the rating assigned to the Issuer by the relevant rating  agency. A rating is not a recommendation to buy, sell or hold securities and may be subject to  suspension, reduction or withdrawal at any time by the assigning rating agency. Please also refer to  “Risk Factors - Credit ratings assigned to the Notes may not reflect all the risks associated with an  investment in those Notes”.  Prospective investors should consider carefully the risks set forth under Risk Factors on pages 14 to  19 prior to making investment decisions with respect to the Notes.  Arranger  NatWest Markets  Dealers  Barclays  HSBC  Mizuho Securities  NatWest Markets   BofA Merrill Lynch  Lloyds Bank Corporate Markets  MUFG  RBC Capital Markets  Santander Corporate & Investment Banking    The date of this Prospectus is 12 August 2019    

 

4  IMPORTANT INFORMATION  This Prospectus comprises a base prospectus, in respect of all Notes other than Exempt Notes issued  under the Programme, for the purposes of Article 8 of the Prospectus Regulation. When used in this  Prospectus, Prospectus Regulation means Regulation (EU) 2017/1129 (as amended and/or  supplemented from time to time, and includes any relevant implementing measure in a relevant Member  State of the European Economic Area) and for the purpose of giving information with regard to the  Relevant Issuer and the Notes which, according to the particular nature of the Relevant Issuer and the  Notes, is necessary to enable investors to make an informed assessment of the assets and liabilities,  financial position, profit and losses and prospects of the Relevant Issuer.  This Prospectus shall be read and construed in conjunction with any amendment or supplement hereto.  Furthermore, in relation to any Series of Notes, this Prospectus should be read and construed together  with the relevant Final Terms.  The Issuers have each undertaken to the Arranger and the Dealers in the Programme to comply with  section 87G of the Financial Services and Markets Act 2000, as amended (the FSMA). Following the  publication of this Prospectus, a supplement may be prepared by the Issuers and approved by the FCA  which will comprise a supplementary prospectus in accordance with section 87G of the FSMA.  Statements contained in any such supplement (or contained in any document incorporated by reference  therein) shall, to the extent applicable (whether expressly, by implication or otherwise), be deemed to  modify or supersede statements contained in this Prospectus. Any statement so modified or superseded  shall not be deemed, except as so modified or superseded, to constitute part of this Prospectus.  In the case of any Notes which are to be admitted to trading on a regulated market within the European  Economic Area or offered to the public in a Member State of the European Economic Area in  circumstances which require the publication of a prospectus under the Prospectus Regulation, the  minimum specified denomination shall be €100,000 (or its equivalent in any other currency as at the  date of issue of the Notes).  This Prospectus is not a prospectus for the purposes of Section 12(a)(2) or any other provision or order  under the Securities Act.  Each Issuer accepts responsibility for the information contained in this Prospectus and the Final Terms  for each Tranche of Notes issued under the Programme. To the best of the knowledge of the Issuers,  the information contained in this Prospectus is in accordance with the facts and the Prospectus makes  no omission likely to affect its import. Any information sourced from third parties contained in this  Prospectus has been accurately reproduced (and is clearly sourced where it appears in the document)  and, as far as the Issuers are aware and are able to ascertain from information published by that third  party, no facts have been omitted which would render the reproduced information inaccurate or  misleading.  Subject as provided in the applicable Final Terms, the only persons authorised to use this Prospectus in  connection with an offer of Notes are the persons named in the applicable Final Terms as the relevant  Dealer or the Managers, as the case may be.  Tranches of Notes may be rated or unrated. Where a Tranche of Notes is rated, the rating assigned to  such Tranche will be specified in the applicable Final Terms. A rating is not a recommendation to buy,  sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the  assigning rating agency.  The rating of certain Tranches of Notes to be issued under the Programme may be specified in the  applicable Final Terms. Whether or not each credit rating applied for in relation to the relevant Tranches  of Notes has been issued by a credit rating agency established in the European Union and registered  under the CRA Regulation will be disclosed in the Final Terms.   

 

5  Copies of each set of Final Terms will be available from the specified office set out below of each of  the Paying Agents (as defined below) and (in the case of Notes to be admitted to the Official List) will  be available from the registered office of the Relevant Issuer.  Neither the Arranger, the Dealers nor the Note Trustee have independently verified the information  contained herein. Accordingly, no representation, warranty or undertaking, express or implied, is made  and no responsibility or liability is accepted by the Arranger, the Dealers or the Note Trustee as to the  accuracy or completeness of the information contained or incorporated in this Prospectus or any other  information provided by the Issuers in connection with the Programme.  No person is or has been authorised by the Issuers, any of the Arranger, the Dealers or the Note Trustee  to give any information or to make any representation not contained in or not consistent with this  Prospectus or any other information supplied in connection with the Programme or the Notes and, if  given or made, such information or representation must not be relied upon as having been authorised  by the Issuers, the Arranger, any Dealer or the Note Trustee.  Neither this Prospectus nor any other information supplied in connection with the Programme or any  Notes (i) is intended to provide the basis of any credit or other evaluation or (ii) should be considered  as a recommendation by the Issuers, the Arranger, any of the Dealers or the Note Trustee that any  recipient of this Prospectus or any other information supplied in connection with the Programme or any  Notes should purchase any Notes. Each investor contemplating purchasing any Notes should make its  own independent investigation of the financial condition and affairs, and its own appraisal of the  creditworthiness, of the Issuers. Neither this Prospectus nor any other information supplied in  connection with the Programme or the issue of any Notes constitutes an offer or invitation by or on  behalf of the Issuers, the Arranger, any of the Dealers or the Note Trustee to any person to subscribe  for or to purchase any Notes.  Neither the delivery of this Prospectus nor the offering, sale or delivery of any Notes shall in any  circumstances imply that the information contained herein concerning the Issuers is correct at any time  subsequent to the date hereof or that any other information supplied in connection with the Programme  is correct as of any time subsequent to the date indicated in the document containing the same. The  Arranger, the Dealers and the Note Trustee expressly do not undertake to review the financial condition  or affairs of the Issuers during the life of the Programme or to advise any investor in the Notes of any  information coming to their attention.  IMPORTANT – EEA RETAIL INVESTORS – If the Final Terms in respect of any Notes include a  legend entitled “Prohibition of Sales to EEA Retail Investors”, the Notes are not intended to be offered,  sold or otherwise made available to and should not be offered, sold or otherwise made available to any  retail investor in the European Economic Area (EEA). For these purposes, a retail investor means a  person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MiFID II; or  (ii) a customer within the meaning of the Directive 2016/97/EU (as amended or superseded) (the  Insurance Distribution Directive), where that customer would not qualify as a professional client as  defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in the  Prospectus Regulation. Consequently no key information document required by Regulation (EU) No  1286/2014 (as amended or superseded) (the PRIIPs Regulation) for offering or selling the Notes or  otherwise making them available to retail investors in the EEA has been prepared and therefore offering  or selling the Notes or otherwise making them available to any retail investor in the EEA may be  unlawful under the PRIIPs Regulation.  MiFID II product governance / target market – The Final Terms in respect of any Notes (or Pricing  Supplement, in the case of Exempt Notes) will include a legend entitled “MiFID II product governance”  which will outline the target market assessment in respect of the Notes and which channels for  distribution of the Notes are appropriate. Any person subsequently offering, selling or recommending  the Notes (a distributor) should take into consideration the target market assessment; however, a  distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect  

 

6  of the Notes (by either adopting or refining the target market assessment) and determining appropriate  distribution channels.  A determination will be made in relation to each issue about whether, for the purpose of the Product  Governance rules under EU Delegated Directive 2017/593 (the MiFID Product Governance Rules),  any Dealer subscribing for any Notes is a manufacturer in respect of such Notes, but otherwise neither  the Arranger nor the Dealers nor any of their respective affiliates will be a manufacturer for the purpose  of the MIFID Product Governance Rules.  Benchmarks Regulation - Interest and/or other amounts payable under the Notes may be calculated  by reference to certain reference rates. Any such reference rate may constitute a benchmark for the  purposes of Regulation (EU) 2016/2011 (as amended or superseded) (the Benchmarks Regulation). If  any such reference rate does constitute such a benchmark, the Final Terms or Pricing Supplement will  indicate whether or not the benchmark is provided by an administrator included in the register of  administrators and benchmarks established and maintained by the European Securities and Markets  Authority (ESMA) pursuant to Article 36 (Register of administrators and benchmarks) of the  Benchmarks Regulation. Transitional provisions in the Benchmarks Regulation may have the result that  the administrator of a particular benchmark is not required to appear in the register of administrators  and benchmarks at the date of the Final Terms or Pricing Supplement. The registration status of any  administrator under the Benchmarks Regulation is a matter of public record and, save where required  by applicable law, the Issuer does not intend to update the relevant Final Terms or Pricing Supplement  to reflect any change in the registration status of the administrator.  Amounts payable on the Notes are calculated by reference to one of LIBOR or EURIBOR, as specified  in the relevant Final Terms. As at the date of this Prospectus, the administrator of LIBOR, ICE  Benchmark Administration Limited, and the administrator of EURIBOR, the European Money Markets  Institute, are included in ESMA’s register of administrators under Article 36 of the Benchmarks  Regulation.  As far as the Issuer is aware, the transitional provisions in Article 51 of the Benchmarks Regulation  apply, such that the European Money Markets Institute (as administrator of EURIBOR), is not currently  required to obtain authorisation/registration (or, if located outside the European Union, recognition,  endorsement or equivalence).  This Prospectus does not constitute an offer to sell or the solicitation of an offer to buy any Notes in  any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such  jurisdiction. The distribution of this Prospectus and the offer or sale of Notes may be restricted by law  in certain jurisdictions. The Issuers, the Arranger, the Dealers and the Note Trustee do not represent  that this Prospectus may be lawfully distributed, or that any Notes may be lawfully offered, in  compliance with any applicable registration or other requirements in any such jurisdiction, or pursuant  to an exemption available thereunder, nor assume any responsibility for facilitating any such  distribution or offering. In particular, no action has been taken by the Issuers, the Arranger, the Dealers  or the Note Trustee which would permit a public offering of any Notes or distribution of this Prospectus  in any jurisdiction where action for that purpose is required. Accordingly, no Notes may be offered or  sold, directly or indirectly, and neither this Prospectus nor any advertisement or other offering material  may be distributed or published in any jurisdiction, except in circumstances that will result in  compliance with any applicable laws and regulations. Persons into whose possession this Prospectus or  any Notes may come must inform themselves about, and observe, any such restrictions on the  distribution of this Prospectus and the offering and sale of Notes. In particular, there are restrictions on  the distribution of this Prospectus and the offer or sale of Notes in the United States and the United  Kingdom (see “Subscription and Sale”). Neither the Issuers, the Arranger nor any Dealer have  authorised, nor do they authorise, the making of any offer of Notes in circumstances in which an  obligation arises for the Issuers or any Dealer to publish or supplement a prospectus for such offer. In  addition, if a jurisdiction requires that the offer of the Notes be made by a licenced broker or dealer and  

 

7  the Dealers or any affiliate of the Dealers is a licenced broker or dealer in that jurisdiction, the offer  shall be deemed to be made by the Dealers or such affiliates on behalf of the Issuers in such jurisdiction.  The investment activities of certain investors are subject to legal investment laws and regulations, or  review or regulation by certain authorities. Each potential investor should consult its legal advisers to  determine whether and to what extent (1) the Notes are legal investments for it, (2) the Notes can be  used as collateral for various types of borrowing and (3) other restrictions apply to its purchase or pledge  of the Notes. Financial institutions should consult their legal advisers or the appropriate regulators to  determine the appropriate treatment of the Notes under any applicable risk-based capital or similar rules.  All references in this document to Sterling and £ refer to the lawful currency for the time being of the  United Kingdom of Great Britain and Northern Ireland, references to euro and € refer to the currency  introduced at the start of the third stage of the Economic and Monetary Union pursuant to the Treaty on  the Functioning of the European Union, and references to U.S. Dollars and $ refer to the lawful currency  for the time being of the United States of America.  In making an investment decision, investors must rely on their own examination of the Issuers and the  terms of the Notes being offered, including the merits and risks involved. The Notes have not been  approved or disapproved by the United States Securities and Exchange Commission or any other  securities commission or other regulatory authority in the United States, nor have the foregoing  authorities approved this Prospectus or confirmed the accuracy or determined the adequacy of the  information contained in this Prospectus. Any representation to the contrary is unlawful.  NOTES ISSUED BY AN ISSUER ARE OBLIGATIONS SOLELY OF THAT ISSUER AND ARE  ISSUED WITHOUT ANY RECOURSE WHATEVER TO THE OTHER ISSUERS HEREUNDER.    

 

8  STABILISATION  In connection with the issue of any Tranche of Notes, the Dealer or Dealers (if any) named as the  stabilisation manager(s) (the Stabilisation Manager(s)) (or persons acting on behalf of any  Stabilisation Manager(s)) in the applicable Final Terms may over-allot Notes or effect transactions with  a view to supporting the market price of the Notes at a level higher than that which might otherwise  prevail. However, stabilisation may not necessarily occur. Any stabilisation action may begin on or  after the date on which adequate public disclosure of the terms of the offer of the relevant Tranche of  Notes is made and, if begun, may cease at any time, but it must end no later than the earlier of 30 days  after the issue date of the relevant Tranche of Notes and 60 days after the date of the allotment of the  relevant Tranche of Notes. Any stabilisation action or over allotment must be conducted by the relevant  Stabilisation Manager(s) (or persons acting on behalf of any Stabilisation Manager(s)) in accordance  with all applicable laws and rules. Any profit or loss sustained as a consequence of any such over- allotment or stabilisation action shall, as against the Issuer, be for the account of the Stabilisation  Manager(s).    

 

9  TABLE OF CONTENTS  Page  OVERVIEW OF THE PROGRAMME ........................................................................................... 10  RISK FACTORS ................................................................................................................................. 14  SUPPLEMENTARY PROSPECTUSES .......................................................................................... 19  DOCUMENTS INCORPORATED BY REFERENCE ................................................................... 20  PRESENTATION OF FINANCIAL INFORMATION .................................................................. 22  FORM OF THE NOTES .................................................................................................................... 23  FORM OF FINAL TERMS ............................................................................................................... 28  FORM OF PRICING SUPPLEMENT ............................................................................................. 39  TERMS AND CONDITIONS OF THE NOTES ............................................................................. 52  USE OF PROCEEDS ......................................................................................................................... 98  DESCRIPTION OF THE ISSUERS ................................................................................................. 99  TAXATION ....................................................................................................................................... 113  SUBSCRIPTION AND SALE ......................................................................................................... 115  GENERAL INFORMATION .......................................................................................................... 118    

 

10  OVERVIEW OF THE PROGRAMME  The following description does not purport to be complete and is taken from, and is qualified in its  entirety by (i) the remainder of this Prospectus and (ii) in relation to the terms and conditions of any  particular Tranche of Notes, the applicable Final Terms.   Words and expressions defined in “Form of the Notes” and “Terms and Conditions of the Notes” below  shall have the same meanings in this Overview.  Issuers Western Power Distribution (East Midlands) plc  Legal Entity Identifier: 549300KXFU5Q7NZE9L79   Western Power Distribution (South Wales) plc  Legal Entity Identifier: 549300RHOCSNK1FZ4116   Western Power Distribution (South West) plc  Legal Entity Identifier: 549300UY9FEOG85HFK93   Western Power Distribution (West Midlands) plc  Legal Entity Identifier: 549300L22M2RCLXON143  Description Euro Medium Term Note Programme  Arranger NatWest Markets Plc  Dealers Banco Santander, S.A.   Barclays Bank PLC   HSBC Bank plc   Lloyds Bank Corporate Markets plc   Merrill Lynch International   Mizuho International plc   MUFG Securities EMEA plc   NatWest Markets Plc   RBC Europe Limited   and any other Dealers appointed in accordance with the Dealer Agreement.  Certain Restrictions Each issue of Notes denominated in a currency in respect of which particular laws,  guidelines, regulations, restrictions or reporting requirements apply will only be issued  in circumstances which comply with such laws, guidelines, regulations, restrictions or  reporting requirements from time to time (see “Subscription and Sale”).  Note Trustee HSBC Corporate Trustee Company (UK) Limited  Issuing and Paying  Agent, Registrar,  Transfer Agent and  Calculation Agent  HSBC Bank plc  

 

11  Method of Issue: The Notes will be issued on a syndicated or non-syndicated basis. The Notes will be  issued in series (each a Series) having one or more issue dates and on terms otherwise  identical (or identical other than in respect of the first payment of interest), the Notes of  each Series being intended to be interchangeable with all other Notes of that Series. Each  Series may be issued in tranches (each a Tranche) on the same or different issue dates.  The specific terms of each Tranche (which will be completed, where necessary, with the  relevant terms and conditions and, save in respect of the issue date, issue price, first  payment of interest and nominal amount of the Tranche, will be identical to the terms of  other Tranches of the same Series) will be completed in the Final Terms.  Programme Size Up to £4,000,000,000 (or its equivalent in other currencies, calculated as described in  the Dealer Agreement) outstanding at any time. The Issuers may increase the amount of  the Programme in accordance with the terms of the Dealer Agreement.   Distribution Notes may be distributed by way of private or public placement and, in each case, on a  syndicated or non-syndicated basis.  Currencies Subject to any applicable legal or regulatory restrictions, any currency agreed between  the Relevant Issuer and the relevant Dealer.   Maturities Such maturities as may be agreed between the Relevant Issuer and the relevant Dealer,  subject to such minimum or maximum maturities as may be allowed or required from  time to time by the relevant central bank (or equivalent body) or any laws or regulations  applicable to the Relevant Issuer or the relevant Specified Currency.  Issue Price Notes will be issued on a fully-paid basis and may be issued and at an issue price which  is at par or at a discount to, or premium over, par.  Form of Notes The Notes will be issued in bearer or registered form as described in “Form of the  Notes”. Each Tranche of Bearer Notes will be represented on issue by a temporary  Global Note if (i) definitive Notes are to be made available to Noteholders following the  expiry of 40 days after their issue date or (ii) such Notes have an initial maturity of more  than one year, otherwise such Tranche will be represented by a permanent Global Note.  Registered Notes will be represented by Certificates, one Certificate being issued in  respect of each Noteholder’s entire holding of Registered Notes of one Series.  Certificates representing Registered Notes that are registered in the name of a nominee  for one or more clearing systems are referred to as Global Certificates. A beneficial  interest in a Global Certificate may be transferable for a Certificate in definitive form  only in accordance with the rules and operating procedures of the relevant clearing  system for the time being and in accordance with the detailed regulations in the Agency  Agreement.  Fixed Rate Notes Fixed interest will be payable on such date or dates as may be agreed between the  Relevant Issuer and the relevant Dealer and on redemption and will be calculated on the  basis of such Day Count Fraction as may be agreed between the Relevant Issuer and the  relevant Dealer.  Floating Rate Notes Floating Rate Notes will bear interest at a rate determined:   (i) on the same basis as the floating rate under a notional interest rate swap  transaction in the relevant Specified Currency governed by an agreement  incorporating the 2006 ISDA Definitions (as published by the International  Swaps and Derivatives Association, Inc., and as amended and updated as at the  Issue Date of the first Tranche of the Notes of the relevant Series); or   (ii) on the basis of a reference rate appearing on the agreed screen page of a  commercial quotation service at the relevant time.   The margin (if any) relating to such floating rate will be agreed between the Relevant  Issuer and the relevant Dealer for each Series of Floating Rate Notes.  

 

12  Index Linked  Interest Notes and  Index Linked  Redemption Notes  Payments of principal in respect of Index Linked Redemption Notes or of interest in  respect of Index Linked Interest Notes will be calculated by reference to the UK Retail  Price Index, the UK Consumer Price Index or the UK Consumer Price Index Including  Owner Occupiers’ Housing Costs. Index Linked Redemption Notes and Index Linked  Interest Notes may also specify a Minimum Indexation Factor or a Maximum Indexation  Factor.  Other provisions in  relation to Floating  Rate Notes and Index  Linked Interest Notes  Floating Rate Notes and Index Linked Interest Notes may also have a maximum interest  rate, a minimum interest, a step-up in the interest rate after a certain date (or any  combination of the foregoing).  Zero Coupon Notes Zero Coupon Notes will be offered and sold at a discount to their nominal amount and  will not bear interest.  Interest Periods and  Interest Payment  Dates:  The Notes (other than the Zero Coupon Notes) will have such interest periods and  interest payment dates as the Issuer and the relevant Dealer may agree in relation to a  particular Tranche of Notes.  Redemption by the  Relevant Issuer  The applicable Final Terms will indicate either that the relevant Notes cannot be  redeemed prior to their stated maturity (other than for taxation reasons or following an  Event of Default) or that such Notes will be redeemable at the option of the Relevant  Issuer and/or the Noteholders upon giving notice to the Noteholders or the Relevant  Issuer, as the case may be, on a date or dates specified prior to such stated maturity and  at a price or prices and on such other terms as may be agreed between the Relevant  Issuer and the relevant Dealer.  Redemption at  Option of the  Noteholders on a  Restructuring Event  The Notes issued may also be redeemed at the option of the Noteholders in certain  circumstances following the occurrence of a Restructuring Event, as more particularly  set out in Condition 6(i) (Redemption at the Option of the Noteholders on a  Restructuring Event).  Redemption at the  Option of  Noteholders  If an Investor Put is specified in the Final Terms, the Relevant Issuer shall, at the option  of the holder of any such Note, upon the holder of such Note giving not less than 15 nor  more than 30 days’ notice to the Relevant Issuer (or such other notice period as may be  specified in the Final Terms) redeem such Note on the Optional Redemption Date(s) at  its Optional Redemption Amount together with interest accrued up to (and including)  the date fixed for redemption, as more particularly set out in Condition 6(h) (Redemption  at the Option of Noteholders).  Denomination of  Notes  Notes will be issued in such denominations as may be agreed between the Relevant  Issuer and the relevant Dealer and as specified in the applicable Final Terms save that  the minimum denomination of each Note admitted to trading on a regulated market  within the European Economic Area or offered to the public in a Member State of the  European Economic Area in circumstances which require the publication of a prospectus  under the Prospectus Regulation will be €100,000 (or, if the Notes are denominated in a  currency other than euro, the equivalent amount in such currency as at the date of issue  of the Notes).  Taxation All payments in respect of the Notes will be made without withholding or deduction for  or on account of withholding taxes imposed by the United Kingdom, unless such  deduction or withholding is required by law. In the event that any such withholding or  deduction is required by law, the Relevant Issuer will, save in certain limited  circumstances provided in Condition 10 (Taxation), be required to pay additional  amounts that result in receipt by the Noteholders and Couponholders of such amounts  as would have been received by them had no such withholding or deduction been  required.  

 

13  Negative Pledge and  Restriction on  Distribution of  Dividends  The terms of the Notes will contain a negative pledge provision and a restriction on the  distribution of dividends as further described in Condition 4 (Negative Pledge and  Restriction on Distribution of Dividends).  Cross Acceleration The terms of the Notes will contain a cross acceleration provision which applies in  respect of each Relevant Issuer (and not in respect of the other Issuers’ obligations) as  further described in Condition 12 (Events of Default).  Status of the Notes The Notes will constitute direct, unconditional, unsubordinated and (subject to the  provisions of Condition 3 (Status)) unsecured obligations of the Relevant Issuer and will  rank pari passu among themselves and (save for certain obligations required to be  preferred by law) equally with all other unsecured obligations (other than subordinated  obligations, if any) of the Relevant Issuer, from time to time outstanding.  Ratings Tranches of Notes may be rated or unrated. Where a Tranche of Notes is rated, the rating  assigned to such Tranche will be specified in the applicable Final Terms. A rating is not  a recommendation to buy, sell or hold securities and may be subject to suspension,  reduction or withdrawal at any time by the assigning rating agency. Where Ratings  Downgrade Rate Adjustment is specified as being applicable in the Final Terms, the  Rate of Interest applicable to the Notes may be subject to adjustment upon a  downgrading of the rating of the Notes as more fully described in the “Terms and  Conditions of the Notes”.    Whether or not each credit rating applied for in relation to the relevant Tranches of Notes  has been issued by a credit rating agency established in the European Union and  registered under the CRA Regulation will be disclosed in the Final Terms.  Listing and  Admission to  Trading  Application has been made to the FCA for Notes issued under the Programme to be  admitted to the Official List and to admit the Notes to trading on the Regulated Market.  Notes may be listed or admitted to trading, as the case may be, on other or further stock  exchanges or markets agreed between the Relevant Issuer and the relevant Dealer in  relation to the Series.    Notes which are neither listed nor admitted to trading may also be issued. The FCA has  neither approved nor reviewed information contained in this Prospectus in connection  with such Exempt Notes.  Governing Law The Notes and any non-contractual obligations arising out of or in connection with the  Notes will be governed by English law.   Selling Restrictions There are restrictions on the distribution of this Prospectus and the offer or sale of Notes  in the United States and the European Economic Area (including the United Kingdom),  and such other restrictions as may be required in connection with the offering and sale  of a particular Tranche of Notes (see “Subscription and Sale”).     

 

14  RISK FACTORS  In purchasing Notes, investors assume the risk that any of the Issuers may become insolvent or  otherwise be unable to make all payments due in respect of the Notes. There is a wide range of factors  which individually or together could result in any of the Issuers becoming unable to make all payments  due. It is not possible to identify all such factors or to determine which factors are most likely to occur,  as the Issuers may not be aware of all relevant factors and certain factors which they currently deem  not to be material may become material as a result of the occurrence of events outside the Issuers’  control. The Issuers have identified in this Prospectus a number of factors which could materially  adversely affect their businesses and ability to make payments due. In addition, factors which are  material for the purpose of assessing the market risks associated with the Notes are described below.   Prospective investors should also read the detailed information set out elsewhere in this Prospectus  and reach their own views prior to making any investment decision. Noteholders may lose the value of  their entire investment in certain circumstances.  Words and expressions defined in “Terms and Conditions of the Notes” below or elsewhere in this  Prospectus have the same meaning in this section.  Risks related to the Issuer’s business activities and industry  Ofgem Requirements   Each Issuer’s activities are regulated by the Great Britain Office of Gas and Electricity Markets  (Ofgem). Failure to operate the network properly could lead to compensation payments or penalties or  loss of incentive revenues under incentive arrangements. Failure to invest capital expenditure in line  with agreed programmes could also lead to deterioration of the network and clawback of investment  deferred if specified outputs are not met. While each Issuer’s investment programme is targeted to  maintain asset condition and meet the prescribed outputs over the current eight-year period and reduce  customer interruptions and customer minutes lost over the period, no guarantee can be given that these  regulatory requirements will be met.  Failure by an Issuer to comply with the terms of its distribution licence may lead to Ofgem making an  enforcement order or levying a fine on it. In respect of each Issuer, Ofgem has the power to levy fines  of up to 10 per cent. of turnover of that Issuer for any breach of its distribution licence, however the  distribution licence of an Issuer may be terminated immediately in exceptional circumstances, such as  in the event of insolvency proceedings affecting such Issuer.  Under current regulation by Ofgem, each Issuer’s allowed revenue is determined by the distribution  price controls set out under the terms of its distribution licence, and has typically been set by Ofgem  every five years. However from 1 April 2015, the start of the new distribution price control review  (RIIO-ED1), the period has been extended to eight years. Each Issuer has agreed the price control with  Ofgem that covers the eight-year period from 1 April 2015 to 31 March 2023.   Ofgem has indicated that the next price review will revert to a five year period from 1 April 2023 to 31  March 2028. The Issuer is closely watching the developments in the “Revenue = Incentives +  Innovation + outputs” (RIIO) 2 price control process for Gas Distribution and Gas & Electricity  Transmission that will be finalised in the fourth quarter of 2020.  Ofgem is due to issue the RIIO-ED2  Open Letter during the third quarter of 2019 following which a period of consultation will take place  prior to the submission of the Issuer’s business plan during the first half of 2021.  There can be no assurance that future price controls will permit the generation of sufficient revenues to  enable the Relevant Issuer to meet its respective payment obligations under the Notes. There can also  be no assurance that net operating revenues generated by the Relevant Issuer will be sufficient to meet  such payment obligations.  

 

15    Combined Operating Activities of WPDE, WPDW, WPD South West and WPD South Wales  As required by Ofgem in its regulation of distribution network operators (DNOs and each a DNO),  WPDE, WPDW, WPD South West and WPD South Wales are separate legal entities, which are subject  to financial ring-fencing and which hold separate distribution licences. However, on a management and  commercial level WPDE, WPDW, WPD South West and WPD South Wales are operated on a  combined basis under the commercial brand “Western Power Distribution”, utilising central IT,  employee relations and finance functions. As a result, any event which has an adverse impact on  Western Power Distribution may affect the management, financial position and delivery of operations  for WPDE, WPDW, WPD South West and WPD South Wales and, as a result, may affect each Issuer’s  ability to meet its obligations under the Notes.  Procurement Risk  In order to support its core business activities, it is necessary for each of the Issuers to purchase  significant quantities of resources and enter into contracts for the supply of other products and services.  Although the Issuers routinely enter into long-term contracts (including operational equipment contracts  for the purchase of transformers and cables, and service provider contracts for tree trimming services  and dig and lay contractors) to protect their commercial position, significant price rises and/or failure  to secure key materials could have a significant adverse effect on the operations and/or financial position  of the Issuers. Whilst each Issuer receives protection from inflation through its price controls being  linked to the retail price index, it will be exposed or benefit from any changes relative to inflation, either  as a result of commodity prices or issues around supply and demand for plant and equipment or with its  contractors. The Issuers are also exposed to exchange rate fluctuations which may affect each Issuer’s  ability to meet its payment obligations under the Notes, as they make overseas purchases equating to  approximately U.S.$2.6 million and EUR 3 million on average per year. A 0.10% move in the exchange  rate of U.S. Dollars and euros against the pound would increase costs by £154,000 and £240,000  respectively.  Retail price index movements and cost-base variations  The annual revenues of each Issuer are adjusted by the published retail price index (RPI) in the United  Kingdom. There is therefore a risk that each Issuer’s cost base may increase at a faster rate than the RPI  due to inflation as measured by the RPI being less than the rate of inflation on components of the  licensee’s cost base, even though Ofgem’s price control does allow for some cost increases in excess of  RPI. The effects of deflation would also be similar. The annual revenue of each Issuer may reduce at a  greater degree to any deflationary impact on the component costs of the business. If the above were to  happen, each Issuer’s profitability would be reduced and, if the differential between RPI-linked inflation  and experienced operating cost inflation was sufficiently large, it could adversely affect each Issuer’s  business, financial position and results of operations.   In addition, Ofgem have indicated that the consumer price index including owner occupiers’ housing  costs (CPIH) measure of inflation will be utilised after the expiry of the RIIO-ED1 period. They have  stated this move will be net present value neutral but no detail of the mechanism to achieve this has  currently been provided and therefore the impact on each Issuer is uncertain.   Storm Related Supply Interruptions  Failure to manage storm related supply interruptions adequately could lead to negative customer  perception, adverse publicity and a potential financial impact on the business. Storm related supply  interruptions may negatively impact the Issuer’s CML and CI (each as defined in “Description of the  Issuers - Business Overview”) key measures which will, in turn, adversely affect the annual financial  rewards or penalties received under Ofgem’s Interruptions Incentive Scheme (IIS). The Issuers received  approximately £49 million in the year 2017-2018, however no assurance can be given that such  performance can be delivered in the future.  

 

16    Ofgem allows supply interruptions from exceptional events (severe weather and one-off supply  interruptions) to be excluded from each Issuer’s mandatory Ofgem IIS assessment. There are thresholds  that have to be met for each exceptional event in order for such event to be excluded from the  assessment. For example, the threshold to exclude a supply interruption under the “severe weather”  exception is eight times the average number of high voltage faults, so there is a risk that certain supply  interruptions may not reach such thresholds, despite adversely affecting the Issuers’ performance, and  therefore may not be excluded from the IIS assessment. This would adversely affect Ofgem’s  assessment of each Issuers’ performance, and may result the Issuers’ receiving a lower financial award  as compared to the year 2017 – 2018, or possibly a financial penalty.   Pensions and Personnel Risks  Employees and former employees of the Issuers have pension entitlements from the Central Networks  and Western Power Distribution Groups of the Electricity Supply Pension Scheme (the WPD ESPS  Schemes, further details of which are set out in “Description of the Issuers: Pensions – WPDE and  WPDW and Pensions – WPD South West and WPD South Wales”) which are defined benefit pension  schemes. As part of the electricity regulatory framework in the UK, Ofgem currently allows nearly all  the costs of new benefit accrual in relation to distribution-related activities for both the WPD ESPS  Schemes (which are closed to new members) and the Issuers’ defined contribution scheme (the Western  Power Pension Scheme or WPPS) to be charged to customers. Similarly, Ofgem allows approximately  80% of the costs of funding the ESPS Schemes’ actuarial deficits to be charged to customers, subject  to periodic reasonableness reviews. If Ofgem deem that such pension deficit costs have not have been  efficiently and/or reasonably incurred, they may further restrict the amount that can be recovered from  customers and/or seek to claw back such allowances in the future, which may affect each Issuer’s ability  to meet its obligations under the Notes.  Each Issuer’s workforce is covered by collective bargaining agreements, which impacts its labour costs.  The Issuer’s group salary costs including employee salary costs, Pay As You Earn (PAYE) and national  insurance contributions amount to just over £556 million per year. The current collective bargaining  agreements are renewed on a rolling basis and each Issuer cannot ensure that the collective bargaining  agreements will continue without required amendments or that it will reach new agreements with the  unions on satisfactory terms if this event occurs. Furthermore, work stoppages, strikes or similar  industrial actions could adversely impact each Issuer’s business, financial position and results of  operations.  Macroeconomic, market and regulatory risks  Renationalisation  The UK’s Official Opposition, the UK Labour Party, stated in its manifesto in the 8 June 2017 UK  General Election a commitment that, were it to win the General Election, it would renationalise the  UK’s energy networks. This commitment was reaffirmed in the UK Labour Party’s proposal for  publicly owned energy networks titled “Bringing Energy Home” published on 15 May 2019. Although  the proposal states that, in the event of such a renationalisation event, existing indebtedness of  renationalised companies would be honoured in full by the UK Government, the Notes may be assigned  a different credit rating, which could negatively affect the trading price of the Notes. Any other  intervention by the UK Government in the energy markets, or changes in governmental policy, may  affect each Issuer’s ability to meet its obligations under the Notes.  An active secondary market in respect of the Notes may never be established or may be illiquid and  this would adversely affect the value at which an investor could sell his Notes  The Notes may have no established trading market when issued, and one may never develop. If a market  does develop, it may not be liquid. Therefore, investors may not be able to sell their Notes easily or at  prices that will provide them with a yield comparable to similar investments that have a developed  secondary market. Although application has been made for the Notes to be admitted to listing on the  

 

17    Official List and to trading on the regulated market, there is no assurance that such application will be  accepted or that an active trading market will develop. Illiquidity may have a severely adverse effect on  the market value of Notes.  Risks related to the structure of the Notes  Risks related to Notes which are linked to benchmarks  Reference rates and indices, including interest rate benchmarks, such as LIBOR or EURIBOR, which  are used to determine the amounts payable under financial instruments or the value of such financial  instruments (Benchmarks), have, in recent years, been the subject of political and regulatory scrutiny  as to how they are created and operated. This has resulted in regulatory reform and changes to existing  Benchmarks, with further changes anticipated. These reforms and changes may cause a Benchmark to  perform differently than it has done in the past or to be discontinued. Any change in the performance  of a Benchmark or its discontinuation, could have a material adverse effect on any Notes referencing or  linked to such Benchmark.  Any of the specified methods of determining the Alternative Reference Rate or the permitted  adjustments to such rates may result in interest payments on the Floating Rate Notes that are lower than  or that do not otherwise correlate over time with the payments that would have been made on the  Floating Rate Notes if LIBOR or EURIBOR, for example, continued to be available. Other floating rate  debt securities issued by other issuers, by comparison, may be subject in similar circumstances to  different procedures for the establishment of the Alternative Reference Rate. Any of the foregoing may  have a material adverse effect on the amount of interest payable on the Floating Rate Notes, or the  market liquidity and market value of the Floating Rate Notes.  Where quotations are not available (as may be the case if the relevant banks are not submitting rates for  the determination of such Original Reference Rate), the Rate of Interest may ultimately revert to the  Rate of Interest applicable as at the last preceding Interest Determination Date before the Original  Reference Rate was discontinued. Uncertainty as to the continuation of the Original Reference Rate,  the availability of quotes from reference banks, and the rate that would be applicable if the Original  Reference Rate is discontinued may adversely affect the value of, and return on, the Floating Rate Notes.  Where ISDA Determination is specified as the manner in which the Rate of Interest in respect of  Floating Rate Notes is to be determined, and the Floating Rate Option specified is an “IBOR” Floating  Rate Option, the Rate of Interest may be determined by reference to the relevant screen rate or the rate  determined on the basis of quotations from certain banks. If the relevant IBOR is permanently  discontinued and the relevant screen rate or quotations from banks (as applicable) are not available, the  operation of these provisions may lead to uncertainty as to the Rate of Interest that would be applicable,  and may, adversely affect the value of, and return on, the Floating Rate Notes.  Please also refer to “Risk Factors - The conditions of the Notes contain provisions which may permit  their modification without the consent of all investors and confer significant discretions on the Trustee  which may be exercised without the consent of the Noteholders and without regard to the individual  interests of particular Noteholders” for further risks relating to the Benchmarks.   Terms and expressions used but not defined in this risk factor have the respective meanings given to  them in the Conditions.  Index Linked Interest Notes and Index Linked Redemption Notes  A Relevant Issuer may issue Notes with principal and/or interest determined by reference to the RPI,  CPI or CPIH. The RPI, CPI or CPIH may go down as well as up. Information on the RPI, CPI and CPIH  can be found at https://www.gov.uk/search/research-and-statistics.   

 

18    Where the amount of interest payable on a Tranche of Notes is subject to adjustment by reference to  the RPI, CPI or CPIH, a decrease in the RPI, CPI or CPIH over the reference period will reduce the  amount of interest payable in respect of such Notes. In a deflationary environment, the annual interest  received may be lower than the rate of interest specified in the applicable Final Terms.  Where the amount payable upon redemption of any Tranche of Notes is subject to adjustment by  reference to the RPI, CPI or CPIH, a decrease in the RPI, CPI or CPIH over the reference period may  reduce the amount to be repaid upon redemption of such Notes to less than the nominal amount of such  Notes, unless the applicable Final Terms specify a minimum redemption amount which is equal to or  higher than the nominal amount of such Notes.  The historical experience of the RPI, CPI or CPIH should not be viewed as an indication of the future  performance of the RPI, CPI or CPIH during the term of any Notes. Accordingly, each potential investor  should consult its own financial and legal advisers about the risk entailed by an investment in any Notes  linked to the RPI, CPI or CPIH and the suitability of such Notes in light of its particular circumstances.  There are particular risks associated with an investment in Index Linked Interest Notes and Index  Linked Redemption Notes (Indexed Notes). In particular, an investor might receive less interest than  expected or no interest in respect of such Notes and may lose some or all of the principal amount  invested by it.  The conditions of the Notes contain provisions which may permit their modification without the  consent of all investors and confer significant discretions on the Trustee which may be exercised  without the consent of the Noteholders and without regard to the individual interests of particular  Noteholders.  The Conditions of the Notes contain provisions for calling meetings of Noteholders to consider matters  affecting their interests generally. These provisions permit defined majorities to bind all Noteholders  including Noteholders who did not attend and vote at the relevant meeting and Noteholders who voted  in a manner contrary to the majority.  The Conditions of the Notes also provide that the Note Trustee may, without the consent of Noteholders  and without regard to the interests of particular Noteholders, agree to (i) any modification, waiver or  authorisation of any breach, or proposed breach, of any of the provisions of the Notes or the Trust Deed  or (ii) determine without the consent of the Noteholders that any Event of Default (as defined in the  Trust Deed) shall not be treated as such or (iii) the substitution of another company as principal debtor  under the Notes in place of the Relevant Issuer, in the circumstances described in Condition 13  (Meetings of Noteholders, Modification, Waiver and Substitution) or (iv) the Relevant Issuer may, in  consultation with an Independent Adviser (as defined in the Conditions), vary the Conditions to ensure  the proper operation of a Successor Rate or Alternative Reference Rate to be used in place of LIBOR,  EURIBOR or any other Benchmark without any requirement for consent or approval of Noteholders  (see “Risks related to Notes which are linked to benchmarks”) (provided that, in each case, it is not, in  the opinion of the Note Trustee, materially prejudicial to the interests of the Noteholders). Any such  amendments made to the Conditions of the Notes, which may be made without the consent of  Noteholders and without regard to the interests of particular Noteholders, could negatively affect the  trading price of the Notes.     

 

19    SUPPLEMENTARY PROSPECTUSES  Following the publication of this Prospectus, a supplementary prospectus may be prepared by the  Issuers and approved by the FCA, which will comprise a supplementary prospectus in accordance with  section 87G of the FSMA. Statements contained in any such supplementary prospectus (or contained  in any document incorporated by reference therein) shall, to the extent applicable (whether expressly,  by implication or otherwise), be deemed to modify or supersede statements contained in this Prospectus.  Any statement so modified or superseded shall not, except as so modified or superseded, constitute a  part of this Prospectus.  The Issuers will, in the event of any significant new factor, material mistake or inaccuracy relating to  information included in this Prospectus which is capable of affecting the assessment of any Notes,  prepare a supplementary prospectus or publish a new Prospectus for use in connection with any  subsequent issue of Notes.  

 

20    DOCUMENTS INCORPORATED BY REFERENCE  The following documents which have previously been published or are published simultaneously with  this Prospectus and have been filed with the FCA shall be incorporated in, and form part of, this  Prospectus:  (a) The directors’ report, the independent auditor’s report and financial statements set out at pages  26 to 65 of the annual report and financial statements of WPDE for the year ended 31 March  2018 (the WPDE 2018 Annual Report). For the avoidance of doubt, the statement contained  on the cover page of the WPDE 2018 Annual Report may be disregarded as irrelevant for the  purposes of investors and the WPDE 2018 Annual Report may be read in isolation with regard  to the financial position of WPDE;  (b) The directors’ report, the independent auditor’s report and financial statements set out at pages  25 to 75 of the annual report and financial statements of WPDE for the year ended 31 March  2019 (the WPDE 2019 Annual Report). For the avoidance of doubt, the statement contained  on the cover page of the WPDE 2019 Annual Report may be disregarded as irrelevant for the  purposes of investors and the WPDE 2019 Annual Report may be read in isolation with regard  to the financial position of WPDE;  (c) The directors’ report, the independent auditor’s report and financial statements set out at pages  26 to 64 of the annual report and financial statements of WPDW for the year ended 31 March  2018 (the WPDW 2018 Annual Report). For the avoidance of doubt, the statement contained  on the cover page of the WPDW 2018 Annual Report may be disregarded as irrelevant for the  purposes of investors and the WPDW 2018 Annual Report may be read in isolation with regard  to the financial position of WPDW;  (d) The directors’ report, the independent auditor’s report and financial statements set out at pages  25 to 73 of the annual report and financial statements of WPDW for the year ended 31 March  2019 (the WPDW 2019 Annual Report). For the avoidance of doubt, the statement contained  on the cover page of the WPDW 2019 Annual Report may be disregarded as irrelevant for the  purposes of investors and the WPDW 2019 Annual Report may be read in isolation with regard  to the financial position of WPDW;  (e) The directors’ report, the independent auditor’s report and financial statements set out at pages  26 to 66 of the annual report and financial statements of WPD South West for the year ended  31 March 2018 (the WPD South West 2018 Annual Report). For the avoidance of doubt, the  statement contained on the cover page of the WPD South West 2018 Annual Report may be  disregarded as irrelevant for the purposes of investors and the WPD South West 2018 Annual  Report may be read in isolation with regard to the financial position of WPD South West;  (f) The directors’ report, the independent auditor’s report and financial statements set out at pages  25 to 74 of the annual report and financial statements of WPD South West for the year ended  31 March 2019 (the WPD South West 2019 Annual Report). For the avoidance of doubt, the  statement contained on the cover page of the WPD South West 2019 Annual Report may be  disregarded as irrelevant for the purposes of investors and the WPD South West 2019 Annual  Report may be read in isolation with regard to the financial position of WPD South West;  (g) The directors’ report, the independent auditor’s report and financial statements set out at pages  25 to 68 of the annual report and financial statements of WPD South Wales for the year ended  31 March 2018 (the WPD South Wales 2018 Annual Report). For the avoidance of doubt,  the statement contained on the cover page of the WPD South Wales 2018 Annual Report may  be disregarded as irrelevant for the purposes of investors and the WPD South Wales 2018  Annual Report may be read in isolation with regard to the financial position of WPD South  Wales;  

 

21    (h) The directors’ report, the independent auditor’s report and financial statements set out at pages  25 to 76 of the annual report and financial statements of WPD South Wales for the year ended  31 March 2019 (the WPD South Wales 2019 Annual Report). For the avoidance of doubt,  the statement contained on the cover page of the WPD South Wales 2019 Annual Report may  be disregarded as irrelevant for the purposes of investors and the WPD South Wales 2019  Annual Report may be read in isolation with regard to the financial position of WPD South  Wales;  (i) The Terms and Conditions set out on pages 39 to 73 of the prospectus dated 27 April 2011 and  issued by WPDE and WPDW;  (j) The Terms and Conditions set out on pages 52 to 86 of the prospectus dated 10 September 2013  and issued by WPDE, WPDW, WPD Southwest and WPD South Wales;  (k) The Terms and Conditions set out on pages 49 to 83 of the prospectus dated 14 April 2015 and  issued by WPDE, WPDW, WPD Southwest and WPD South Wales;  (l) The Terms and Conditions set out on pages 52 to 87 of the prospectus dated 9 September 2016  and issued by WPDE, WPDW, WPD Southwest and WPD South Wales;   (m) The Terms and Conditions set out on pages 52 to 87 of the prospectus dated 15 September 2017  and issued by WPDE, WPDW, WPD Southwest and WPD South Wales; and  (n) The Terms and Conditions set out on pages 56 to 95 of the prospectus dated 14 August 2018  and issued by WPDE, WPDW, WPD Southwest and WPD South Wales.  If the documents which are incorporated by reference themselves incorporate any information or other  documents therein, either expressly or implicitly, such information or other documents will not form  part of this Prospectus for the purposes of the Prospectus Regulation except where such information or  other documents are specifically incorporated by reference.  Copies of the documents incorporated by reference in this Prospectus may be viewed electronically and  free of charge at www.westernpower.co.uk/about-us/financial-information and will be available for  viewing on the website of the Regulatory News Service operated by the London Stock Exchange at  http://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.  Any non-incorporated parts of a document referred to herein are either deemed not relevant for an  investor or are otherwise covered elsewhere in this Prospectus.  

 

22    PRESENTATION OF FINANCIAL INFORMATION  The financial information relating to the Issuers, as incorporated by reference into this Prospectus in  respect of the financial year ended 31 March 2018 and the financial year ended 31 March 2019, has  been prepared in accordance with accounting principles generally accepted in the United Kingdom and  the International Financial Reporting Standards (IFRS) adopted by the EU.     

 

23    FORM OF THE NOTES  1 Issue of Notes  If the Global Notes or the Global Certificates are stated in the applicable Final Terms to be  issued in NGN form or to be held under the NSS respectively (as the case may be), the Global  Notes or the Global Certificates will be delivered on or prior to the original issue date of the  Tranche to a Common Safekeeper. Depositing the Global Notes or the Global Certificates with  the Common Safekeeper 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  satisfaction of the Eurosystem eligibility criteria.  Global Notes which are issued in CGN form and Global Certificates which are not held under  the NSS may be delivered on or prior to the original issue date of the Tranche to a Common  Depositary.  If the Global Note is a CGN, upon the initial deposit of a Global Note with a Common  Depository or if the Global Certificate is not held under the NSS, registration of Registered  Notes in the name of any nominee for Euroclear and Clearstream, Luxembourg and delivery of  the relative Global Certificate to the Common Depositary, Euroclear or Clearstream,  Luxembourg will credit each subscriber with a nominal amount of Notes equal to the nominal  amount thereof for which it has subscribed and paid. If the Global Note is a NGN, the nominal  amount of the Notes shall be the aggregate amount from time to time entered in the records of  Euroclear or Clearstream, Luxembourg. The records of such clearing system shall be conclusive  evidence of the nominal amount of Notes represented by the Global Note and a statement issued  by such clearing system at any time shall be conclusive evidence of the records of the relevant  clearing system at that time.  Notes that are initially deposited with the Common Depositary may also be credited to the  accounts of subscribers with (if indicated in the relevant Final Terms) other clearing systems  through direct or indirect accounts with Euroclear and Clearstream, Luxembourg held by such  other clearing systems. Conversely, Notes that are initially deposited with any other clearing  system may similarly be credited to the accounts of subscribers with Euroclear, Clearstream,  Luxembourg or other clearing systems.  2 Relationship of accountholders with Clearing Systems  Each of the persons shown in the records of Euroclear, Clearstream, Luxembourg or any other  permitted clearing system (Alternative Clearing System) as the holder of a Note represented  by a Global Note or a Global Certificate must look solely to Euroclear, Clearstream,  Luxembourg or any such Alternative Clearing System (as the case may be) for his share of each  payment made by the Relevant Issuer to the bearer of such Global Note or the holder of the  underlying Registered Notes, as the case may be, and in relation to all other rights arising under  the Global Notes or Global Certificates, subject to and in accordance with the respective rules  and procedures of Euroclear, Clearstream, Luxembourg, or such Alternative Clearing System  (as the case may be). Such persons shall have no claim directly against the Relevant Issuer in  respect of payments due on the Notes for so long as the Notes are represented by such Global  Note or Global Certificate and such obligations of the Issuer will be discharged by payment to  the bearer of such Global Note or the holder of the underlying Registered Notes, as the case  may be, in respect of each amount so paid.  

 

24    3 Exchange  3.1 Temporary Global Notes  Whilst any Note is represented by a temporary Global Note, payments of principal, interest (if  any) and any other amount payable in respect of the Notes due prior to the Exchange Date (as  defined below) will be made (against presentation of the temporary Global Note if the  temporary Global Note is not intended to be issued in NGN form) only to the extent that  certification (in a form to be provided) to the effect that the beneficial owners of interests in  such Note are not U.S. persons or persons who have purchased for resale to any U.S. person, as  required by U.S. Treasury regulations, has been received by Euroclear and/or Clearstream,  Luxembourg and Euroclear and/or Clearstream, Luxembourg, as applicable, has given a like  certification (based on the certifications it has received) to the Agent (Certification).  In respect of each Tranche initially represented by a temporary Global Note, on and after the  date (the Exchange Date) which is 40 days after such temporary Global Note is issued, interests  in such temporary Global Note will be exchangeable (free of charge) upon a request as  described therein for either (i) interests in a permanent Global Note of the same Series or (ii)  definitive Notes of the same Series with, where applicable, interest coupons and talons attached  (as indicated in the applicable Final Terms and subject, in the case of definitive Notes, to such  notice period as is specified in the applicable Final Terms), in each case against certification of  beneficial ownership as described above unless such certification has already been given,  provided that purchasers in the United States and certain U.S. persons will not be able to receive  definitive Notes. The holder of a temporary Global Note will not be entitled to collect any  payment of interest, principal or other amount due on or after the Exchange Date unless, upon  due certification, exchange of the temporary Global Note for an interest in a permanent Global  Note or for definitive Notes is improperly withheld or refused.  3.2 Permanent Global Notes  Each permanent Global Note will be exchangeable, free of charge to the holder, on or after its  Exchange Date in whole but not in part for Definitive Notes if the permanent Global Note is  held on behalf of Euroclear or Clearstream, Luxembourg or an alternative clearing system and  any such clearing system is closed for business for a continuous period of 14 days (other than  by reason of holidays, statutory or otherwise) or announces an intention permanently to cease  business or in fact does so.  3.3 Exchange for Definitive Notes  In the event that a Global Note is exchanged for Definitive Notes, such Definitive Notes shall  be issued in Specified Denomination(s) only. A Noteholder who holds a principal amount of  less than the minimum Specified Denomination will not receive a Definitive Note in respect of  such holding and would need to purchase a principal amount of Notes such that it holds an  amount equal to one or more Specified Denominations. If temporary Global Notes are  exchangeable for Definitive Notes upon notice, then such Definitive Notes may only be issued  to be held in clearing systems if in denominations equal to €100,000 (or equal to  £100,000/$200,000, as applicable) and integral multiples thereof.  3.4 Global Certificates  If the Final Terms state that the Notes are to be represented by a Global Certificate on issue, the  following will apply in respect of transfers of Notes held in Euroclear or Clearstream,  Luxembourg. These provisions will not prevent the trading of interests in the Notes within a  clearing system whilst they are held on behalf of such clearing system, but will limit the  circumstances in which the Notes may be withdrawn from the relevant clearing system.  

 

25    Transfers of the holding of Notes represented by any Global Certificate pursuant to Condition  2(b) (Transfer of Registered Notes) may only be made in part:  (i) if the relevant clearing system is closed for business for a continuous period of 14 days  (other than by reason of holidays, statutory or otherwise) or announces an intention  permanently to cease business or does in fact do so; or  (ii) if principal in respect of any Notes is not paid when due; or  (iii) with the consent of the Relevant Issuer,  provided that, in the case of the first transfer of part of a holding pursuant to paragraph 3.4(i)  or 3.4(ii) above, the registered holder has given the Registrar not less than 30 days’ notice at its  specified office of the registered holder’s intention to effect such transfer.  3.5 Delivery of Notes  If the Global Note is a CGN, on or after any due date for exchange, the holder of a Global Note  may surrender such Global Note or, in the case of a partial exchange, present it for endorsement  to or to the order of the Issuing and Paying Agent. In exchange for any Global Note, or the part  thereof to be exchanged, the Relevant Issuer will (i) in the case of a temporary Global Note  exchangeable for a permanent Global Note, deliver, or procure the delivery of, a permanent  Global Note in an aggregate nominal amount equal to that of the whole or that part of a  temporary Global Note that is being exchanged or, in the case of a subsequent exchange,  endorse, or procure the endorsement of, a permanent Global Note to reflect such exchange or  (ii) in the case of a Global Note exchangeable for Definitive Notes, deliver, or procure the  delivery of, an equal aggregate nominal amount of duly executed and authenticated Definitive  Notes or if the Global Note is a NGN, the Relevant Issuer will procure that details of such  exchange be entered pro rata in the records of the relevant clearing system. In this Prospectus,  Definitive Notes means, in relation to any Global Note, the definitive Bearer Notes for which  such Global Note may be exchanged (if appropriate, having attached to them all Coupons in  respect of interest that have not already been paid on the Global Note and a Talon). Definitive  Notes will be security printed in accordance with any applicable legal and stock exchange  requirements in or substantially in the form set out in the Schedules to the Trust Deed. On  exchange in full of each permanent Global Note, the Relevant Issuer will, if the holder so  requests, procure that it is cancelled and returned to the holder together with the relevant  Definitive Notes.  4 Amendment to Conditions  The temporary Global Notes, permanent Global Notes and Global Certificates contain  provisions that apply to the Notes that they represent, some of which modify the effect of the  terms and conditions of the Notes set out in this Prospectus. The following is a summary of  certain of those provisions:  4.1 Payment  No payment falling due after the Exchange Date will be made on any Global Note unless  exchange for an interest in a permanent Global Note or for Definitive Notes is improperly  withheld or refused by or on behalf of the Issuer. Payments on any temporary Global Note  issued in compliance with the D Rules before the Exchange Date will only be made in relation  to such nominal amount of the temporary Global Note with respect to which there has been  Certification dated no earlier than such due date for payment.  All payments in respect of Notes represented by a Global Note in CGN form will be made  against presentation for endorsement and, if no further payment falls to be made in respect of  

 

26    the Notes, surrender of that Global Note to or to the order of the Issuing and Paying Agent or  such other Paying Agent provided for in the Conditions. If the Global Note is in CGN form, a  record of each payment so made will be endorsed on each Global Note, which endorsement will  be prima facie evidence that such payment has been made in respect of the Notes. Condition  9(e)(vii) (Appointment of Agents) and Condition 10(e) (Payment by another Paying Agent) will  apply to the Definitive Notes only.  If the Global Note is in NGN form, the Issuer shall procure that details of each such payment  shall be entered pro rata in the records of the relevant clearing system and, in the case of  payments of principal, the nominal amount of the Notes recorded in the records of the relevant  clearing system and represented by the Global Note or the Global Certificate will be reduced  accordingly. Payments under a Global Note in NGN form will be made to its holder. Each  payment so made will discharge the Issuer’s obligations in respect thereof. For the purpose of  any payments made in respect of a Global Note, “in the relevant place of presentation” shall be  disregarded in the definition of “business day” set out in Condition 9(h) (Non-Business Days).  All payments in respect of Notes represented by a Global Certificate will be made against  presentation for endorsement and, if no further payment falls to be made in respect of the Notes,  surrender of that Global Certificate. Such payments will be made to, or to the order of, the  person whose name is entered on the Register at the close of business on the Clearing System  Business Day immediately prior to the date for payment, where Clearing System Business Day  means Monday to Friday inclusive except 25 December and 1 January.  4.2 Prescription  Claims against the Issuer in respect of Notes that are represented by a permanent Global Note  will become void unless it is presented for payment within a period of 10 years (in the case of  principal) and five years (in the case of interest) from the appropriate Relevant Date.  4.3 Meetings  The holder of a Global Note or of the Notes represented by a Global Certificate or single  Certificate shall (so long as at least the required proportion of the aggregate principal amount  of the outstanding Notes is represented by such holder) be treated as being two voters for the  purposes of forming a quorum. The holder of a Global Note or of the Notes represented by a  Global Certificate shall be treated as being entitled to one vote in respect of each integral  currency unit of the Specified Currency of the Notes.  4.4 Cancellation  On cancellation of any Note represented by a permanent Global Note (other than upon its  redemption), the Issuer shall procure that details of such cancellation shall be entered pro rata  in the records of the relevant clearing systems and, upon any such entry being made, the nominal  amount of the Notes recorded in the records of the relevant clearing systems and represented  by this permanent Global Note shall be reduced by the aggregate nominal amount of the Notes  so cancelled.  4.5 Purchase  Notes represented by a permanent Global Note may only be purchased by the Issuer if they are  purchased together with the right to receive all future payments of interest thereon.  4.6 Issuer’s Option  Any option of the Issuer provided for in the Conditions of any Notes shall, while such Notes  are represented by a permanent Global Note or a Global Certificate, be exercised by the Issuer  

 

27    giving notice to the Issuing and Paying Agent, the Noteholders and the relevant clearing systems  (or procuring that such notice is given on its behalf) within the time limits set out in and  containing the information required by the Conditions, except that the notice shall not be  required to contain the serial numbers of Notes drawn in the case of a partial exercise of an  option and accordingly no drawing of Notes shall be required. In the case of a partial exercise  of an option, the rights of accountholders with a clearing system in respect of the Notes will be  governed by the standard procedures of Euroclear and/or Clearstream, Luxembourg and shall  be reflected in the records of Euroclear and/or Clearstream, Luxembourg as either a pool factor  or a reduction in nominal amount, at their discretion. Following the exercise of any such option,  the Issuer shall procure that the nominal amount of the Notes recorded in the records of the  relevant clearing systems and represented by the permanent Global Note or Global Certificate  shall be reduced accordingly.  4.7 Noteholder’s Option  Any option of the Noteholders provided for in the Conditions of any Notes may, while such  Notes are represented by a permanent Global Note or a Global Certificate, be exercised by the  holder of such permanent Global Note or Global Certificate by giving notice to the Issuing and  Paying Agent within the time limits relating to the deposit of Notes with a Paying Agent set out  in the Conditions substantially in the form of the notice available from any Paying Agent, except  that the notice shall not be required to contain the certificate numbers of the Notes in respect of  which the option has been exercised. Following the exercise of any such option, the Issuer shall  procure that the nominal amount of the Notes recorded in the records of the relevant clearing  systems and represented by the permanent Global Note or Global Certificate shall be reduced  by the aggregate nominal amount stated in the relevant exercise notice.  4.8 Trustee’s Powers  So long as any Note is held by or on behalf of Euroclear or Clearstream, Luxembourg, in  considering the interests of Noteholders the Note Trustee may consider the interests (either  individual or by category) of its accountholders or participants with entitlements to any such  Note as if such accountholders or participants were the holder(s) thereof.  4.9 Notices  Notices required to be given in respect of the Notes represented by a Global Note (or Global  Certificate, as applicable) may be given by their being delivered (so long as such Global Note  or Global Certificate is held on behalf of Euroclear and/or Clearstream, Luxembourg and/or an  alternative clearing system) to Euroclear, Clearstream, Luxembourg and/or such alternative  clearing system, as the case may be, or otherwise to the holder of the Global Note (or Global  Certificate, as applicable), rather than by publication as required by the Conditions.    

 

28    FORM OF FINAL TERMS  [PROHIBITION OF SALES TO EEA RETAIL INVESTORS – The Notes are not intended to be  offered, sold or otherwise made available to and should not be offered, sold or otherwise made available  to any retail investor in the European Economic Area (EEA). For these purposes, a retail investor means  a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive  2014/65/EU (as amended or superseded) (MiFID II); or (ii) a customer within the meaning of Directive  2016/97/EU (as amended or superseded) (the Insurance Distribution Directive), where that customer  would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii)  not a qualified investor as defined in the Regulation (EU) 2017/1129 (as amended or superseded) (the  Prospectus Regulation). Consequently no key information document required by Regulation (EU) No  1286/2014 (as amended or superseded) (the PRIIPs Regulation) for offering or selling the Notes or  otherwise making them available to retail investors in the EEA has been prepared and therefore offering  or selling the Notes or otherwise making them available to any retail investor in the EEA may be  unlawful under the PRIIPs Regulation.]  [MIFID II product governance / Professional investors and ECPs only target market – Solely for  the purposes of [the/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)/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 manufacturer[‘s/s’] 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 manufacturer[‘s/s’] target market  assessment) and determining appropriate distribution channels.]  Prohibition of sales to consumers in Belgium: The Notes are not intended to be offered, sold or  otherwise made available to, and should not be offered, sold or otherwise made available to, any  consumer (consument/consommateur) within the meaning of the Belgian Code of Economic Law  (Wetboek van economisch recht/Code de droit économique).  [Date]  [Western Power Distribution (East Midlands) plc]/[Western Power Distribution (South Wales)  plc]/ [Western Power Distribution (South West) plc]/ [Western Power Distribution (West  Midlands) plc]  Legal Entity Identifier: [  ]  Issue of [Aggregate Nominal Amount of Tranche] [Title of Notes] (the “Notes”)  under the £4,000,000,000  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 Prospectus dated 12 August 2019 [and the supplement[s] dated [  ][ and [  ]], which [together]  constitute[s] a base prospectus (the Prospectus)] for the purposes of the Prospectus Regulation (EU)  2017/1129 (as amended or superseded) (the Prospectus Regulation). This document constitutes the  final terms of the Notes described herein (the Final Terms) for the purposes of Article 8 of the  Prospectus Regulation and must be read in conjunction with such Prospectus [as so supplemented]. Full  information on the Issuer and the offer of the Notes is only available on the basis of the combination of  these Final Terms and the Prospectus [as so supplemented]. The Prospectus [and the supplemental  

 

29    Prospectus] [is] [are] available for viewing [at www.westernpower.co.uk/about-us/financial- information] [and] during normal business hours at Avonbank, Feeder Road, Bristol BS2 0TB [and  copies may be obtained from Avonbank, Feeder Road, Bristol BS2 0TB]. The Prospectus and (in the  case of Notes listed and admitted to trading on the regulated market of the London Stock Exchange) the  applicable Final Terms will also be published on the website of the London Stock Exchange:  www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.]  [Terms used herein shall be deemed to be defined as such for the purposes of the Conditions (the  Conditions) set forth in the prospectus dated [  ], which is incorporated by reference into the  Prospectus dated 12 August 2019. This document constitutes the Final Terms of the Notes described  herein (the Final Terms) for the purposes of Article 8 of the Prospectus Regulation (EU) 2017/1129  (as amended or superseded) (the Prospectus Regulation) and must be read in conjunction with the  Prospectus dated 12 August 2019 [and the supplement[s] dated [  ] [ and [  ]], which [together]  constitute[s] a base prospectus for the purposes of the Prospectus Regulation, including the Conditions  incorporated by reference in the Prospectus. The Prospectuses [and the supplement[s]] are available for  viewing [at [website of relevant Issuer]] [and] during normal business hours at Avonbank, Feeder Road,  Bristol BS2 0TB [and copies may be obtained from Avonbank, Feeder Road, Bristol BS2 0TB. The  Prospectus and (in the case of Notes listed and admitted to trading on the regulated market of the London  Stock Exchange) the applicable Final Terms will also be Published on the website of the London Stock  Exchange: www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.]  1.  Issuer: [Western Power Distribution (East Midlands) plc/ Western  Power Distribution (West Midlands) plc/Western Power  Distribution (South West) plc/Western Power Distribution  (South Wales) plc]  2.  (i)  Series Number: [  ]    (ii)  Tranche Number: [  ]   (iii)  Date on which the Notes will  be consolidated and form a  single Series  [The Notes will be consolidated and form a single Series  with [  ] on [the Issue Date/exchange of the Temporary  Global Note for interests in the Permanent Global Note, as  referred to in paragraph 27 below[, which is expected to  occur on or about [  ]]][Not Applicable]  3.  Specified Currency or Currencies: [  ]  4.  Aggregate Nominal Amount:    (i)  Series: [  ]   (ii)  Tranche: [  ]  5.  (i)  Issue Price of Tranche: [  ] per cent. of the Aggregate Nominal Amount [plus  accrued interest from [  ]]  6.  (i)  Specified Denominations: [  ][[€/£100,000/$200,000] and integral multiples of  [€/£/$1,000] in excess thereof up to and including  [€/£199,000/$399,000]. No Notes in definitive form will be  issued with a denomination of integral multiples above  [€/£199,000/$399,000].]   (ii)  Calculation Amount:  (Applicable to Notes in  definitive form)  [  ]  7.  (i)  Issue Date: [  ]  

 

30     (ii)  Interest Commencement Date: [  ] [Issue Date] [Not Applicable]  8.  Maturity Date: [  ]  9.  Interest Basis: [[  ] per cent. Fixed Rate]  [[Reference Rate] +/- [  ] per cent. Floating Rate]  [Zero Coupon]  [Index Linked Interest]  [(further particulars specified below)]  10   Redemption Basis: [Subject to any purchase and cancellation or early  redemption, the Notes will be redeemed on the Maturity  Date at [  ] per cent. of their nominal amount]  [Index Linked Redemption]  [  ]  11   Change of Interest Basis or Redemption/  Payment Basis:  [  ] [Not Applicable]  12   Put/Call Options: [Investor Put]  [Restructuring Put Option]  [Issuer Call]  [(further particulars specified in paragraph[s] [20]/[21]/[22]  below)]  [Not Applicable]  13   [Date approval by Committee of the  Board of Directors for issuance of Notes  obtained:]  [  ]  Provisions Relating to Interest (if any) Payable  14   Fixed Rate Note Provisions [Applicable/Not Applicable]   (i)  Rate[(s)] of Interest: [  ] per cent. per annum [payable [annually/semi- annually/ quarterly/other (specify)] in arrear]   (ii)  Interest Payment Date(s): [  ] in each year up to and including the Maturity Date/[0]   (iii)  Fixed Coupon Amount[(s)]:  (Applicable to Notes in  definitive form)  [  ] per Calculation Amount   (iv)  Broken Amount(s):  (Applicable to Notes in  definitive form)  [[  ] per Calculation Amount, payable on the Interest  Payment Date falling on [  ]/Not Applicable]   (v)  Day Count Fraction: [Actual/Actual (ISDA)] / [Actual/Actual]  [Actual/365 (Fixed)]  [Actual/365 (Sterling)]  [Actual/360]  [30/360] / [360/360] / [Bond Basis]  [30E/360] / [Eurobond Basis]  [Actual/Actual ICMA]  [30E/360 (ISDA)]   (vi)  Determination Date(s): [  ] in each year  15   Floating Rate Note Provisions [Applicable/Not Applicable]  

 

31     (i)  Specified Period(s) [  ]   (ii)  Specified Interest Payment  Dates:   [  ] in each year[, subject to adjustment in accordance  with the Business Day Convention set out in paragraph (iv)  below]   (iii)  First Interest Payment Date [  ]   (iv)  Business Day Convention: [Floating Rate Convention/Following Business Day  Convention/Modified Following Business Day  Convention/Preceding Business Day Convention]   (v)  Additional Business Centre(s): [  ]   (vi)  Manner in which the Rate of  Interest and Interest Amount is  to be determined:   [Screen Rate Determination/ISDA Determination]   (vii)  Party responsible for  calculating the Rate of Interest  and Interest Amount (if not the  Agent):  [  ]   (viii)  Screen Rate Determination: [Applicable/Not Applicable]    − Reference Rate: [[●] is provided by [administrator legal name] [repeat as  necessary].] [As at the date hereof, [administrator legal  name] [appears]/[does not appear] [repeat as necessary] in  the register of administrators and benchmarks established  and maintained by ESMA pursuant to Article 36 (Register  of administrators and benchmarks) of Regulation (EU)  2016/1011, as amended or superseded]/[As far as the Issuer  is aware, as at the date hereof, the [specify benchmark] does  not fall within the scope of Regulation (EU) 2016/1011, as  amended or superseded] / [Not Applicable]    − Interest Determination  Date(s):  [  ]    − Relevant Screen Page: [  ]    − Relevant Time: [  ]   (ix)  ISDA Determination: [Applicable/Not Applicable]    − Floating Rate Option: [  ]    − Designated Maturity:  [  ]    − Reset Date: [  ]    −  (In the case of a LIBOR or EURIBOR based option, the first  day of the Interest Period)  (N.B The fall-back provisions applicable to ISDA  Determination under the 2006 ISDA Definitions are reliant  upon the provision by reference banks of offered quotations  for LIBOR and/or EURIBOR which, depending on market  circumstances, may not be available at the relevant time)  

 

32     (x)  Linear Interpolation [Not Applicable/Applicable – the Rate of interest for the  [long/short] [first/last] Interest Period shall be calculated  using Linear Interpolation (specify for each short or long  interest period)]   (xi)  Margin(s): [+/-] [  ] per cent. per annum   (xii)  Minimum Rate of Interest: [  ] per cent. per annum   (xiii)  Maximum Rate of Interest: [  ] per cent. per annum   (xiv)  Day Count Fraction: [Actual/Actual (ISDA)] / [Actual/Actual]  [Actual/365 (Fixed)]  [Actual/365 (Sterling)]  [Actual/360]  [30/360] / [360/360] / [Bond Basis]  [30E/360] / [Eurobond Basis]  [Actual/Actual ICMA]  [30E/360 (ISDA)]  16   Zero Coupon Note Provisions [Applicable/Not Applicable]   (i)  Accrual Yield: [  ] per cent. per annum   (ii)  Amortisation Yield: [  ]   (iii)  Day Count Fraction in relation  to Early Redemption Amounts  and late payment:  [Condition 6(b) (Early Redemption) applies]  [Actual/Actual (ISDA)] / [Actual/Actual]  [Actual/365 (Fixed)]  [Actual/365 (Sterling)]  [Actual/360]  [30/360] / [360/360] / [Bond Basis]  [30E/360] / [Eurobond Basis]  [Actual/Actual ICMA]  [30E/360 (ISDA)]  17   Index Linked Interest Note Provisions [Applicable/Not Applicable]   (i)  Index/Formula: [UK Retail Price Index][UK Consumer Price Index][UK  Consumer Price Index Including Owner Occupiers’  Housing Costs]   (ii)  Rate of Interest: [Fixed, calculated in accordance with paragraph 14  above][Floating, calculated in accordance with paragraph  15 above]   (iii)  Minimum Indexation Factor: [Not Applicable] [  ]   (iv)  Maximum Indexation Factor: [Not Applicable] [  ]   (v)  Base Index Figure: [  ]   (vi)  Limited Indexation Month(s): [  ]/[Not Applicable]   (vii)  Reference Gilt: [[  ] per cent. Index-Linked Treasury Stock due [  ]]  [Not Applicable]   (viii)  Index Figure applicable [3][8] months lag  18   Ratings Downgrade Rate Adjustment [Applicable/Not Applicable]  

 

33    Provisions Relating to Redemption  19   Index Linked Redemption Provisions [Applicable/Not Applicable]   (i)  Minimum Indexation Factor: [Not Applicable] [  ]   (ii)  Maximum Indexation Factor: [Not Applicable] [  ]   (iii)  Base Index Figure: [  ]   (iv)  Reference Gilt: [[  ] per cent. Index-Linked Treasury Stock due [  ]]  [Not Applicable]   (v)  Index Figure applicable [3][8] months lag   (vi)  Redeemable in part: [Applicable/Not Applicable]    (1) Minimum  Redemption Amount:  [  ]    (2) Maximum  Redemption Amount:  [  ]  20   Issuer Call [Applicable/Not Applicable]   (i)  Optional Redemption Date(s): [  ]   (ii)  Optional Redemption  Amount(s)  [[  ] per Calculation Amount]   (iii)  Redeemable in part: [Applicable/Not Applicable]    (1) Minimum  Redemption Amount:  [  ]    (2) Maximum  Redemption Amount:  [  ]  21   Investor Put [Applicable (Condition [6(h) (Redemption at the Option of  Noteholders) applies]/Not Applicable]   (i)  Optional Redemption Date(s): [[  ]   (ii)  Notice Period: [  ]/[Refer to Condition 6(h) (Redemption at the Option of  Noteholders)]   (iii)  Optional Redemption  Amount(s):  [[  ] per Calculation Amount ]  22   [Restructuring Put Option [Applicable [6(i) (Redemption at the Option of the  Noteholders on a Restructuring Event) applies]/Not  Applicable]   (i)  Optional Redemption  Amount(s):  [[  ] per Calculation Amount]  23   Final Redemption Amount: [[  ] per Calculation Amount]  

 

34    24   Early Redemption Amount payable on  redemption for taxation reasons or on  event of default  [[  ] per Calculation Amount]  (N.B. If the Final Redemption Amount is 100 per cent. of the  nominal value (i.e. par), the Early Redemption Amount is  likely to be par (but consider). If, however, the Final  Redemption Amount is other than 100 per cent. of the  nominal value, consideration should be given as to what the  Early Redemption Amount should be.)  25   Pre-Maturity Call Option: [Applicable (Condition [6(f) (Pre-Maturity Call Option by  the Issuer)] applies/Not Applicable]  26   Clean-up Call Option: [Applicable (Condition [6(g) (Clean-up Call Option by the  Issuer)] applies/Not Applicable]  27   Make-whole Redemption [Applicable (Condition [6(e) (Redemption at the Option of  the Relevant Issuer) applies]/Not Applicable]   (i)  Make-Whole Redemption  Margin:  [  ]   (ii)  Notice Period: [  ]/[Refer to Condition 6(e) (Redemption at the Option of  the Relevant Issuer)]   (iii)  Make-Whole Reference Bond: [  ]   (iv)  Reference Dealers: [  ]   (v)  Quotation Time: [  ]   (vi)  Determination Date: [  ]   (vii)  If redeemable in part:  (a) Minimum Redemption  Amount:  (b) Maximum Redemption  Amount:    [  ] per Calculation Amount    [  ] per Calculation Amount    General Provisions Applicable to the Notes  28   Form of Notes: [Bearer/Registered]   (i)  if issued in Bearer form: [Temporary Global Note exchangeable for a permanent  Global Note which is exchangeable for Definitive Notes in  the limited circumstances specified in the permanent Global  Note.]  [Temporary Global Note exchangeable for Definitive Notes  on [  ] days’ notice.]  [Permanent Global Note exchangeable for Definitive Notes  in the limited circumstances specified in the permanent  Global Note.]   (ii)  if issued in registered form: [Global Certificate registered in the name of a nominee for  [a common depositary for Euroclear and Clearstream,  Luxembourg/a common safekeeper for Euroclear and  

 

35    Clearstream, Luxembourg (that is, held under the NSS)  exchangeable for Certificates on [  ] days’ notice in the  circumstances specified in the Global Certificate]    [[New Global Note]/[NSS]]: [Yes] [No]  29   Additional Financial Centre(s) or other  special provisions relating to payment  dates:  [Not Applicable/[  ]]  30   Talons for future Coupons to be attached  to Definitive Notes:  [Yes, as the Notes have more than 27 coupon payments,  Talons may be required if, on exchange into definitive form,  more than 27 coupon payments are still to be made]/[No]    THIRD PARTY INFORMATION  [[Relevant third party information] has been extracted from [specify source]. The Issuer confirms that  such information has been accurately reproduced and that, so far as it is aware and is able to ascertain  from information published by [specify source], no facts have been omitted which would render the  reproduced information inaccurate or misleading].  Signed on behalf of  [Western Power Distribution (East Midlands) plc]  [Western Power Distribution (West Midlands) plc]  [Western Power Distribution (South West) plc]  [Western Power Distribution (South Wales) plc]  By:     

 

36    Part B  Other Information  1.  Listing and Admission to Trading   (i)  Listing and admission to  trading:  [Application has been made by the Issuer (or on its behalf)  for the Notes to be admitted to trading on the London Stock  Exchange’s regulated market and listing on the Official List  of the FCA with effect from [  ].]     [Application is expected to be made by the Issuer (or on its  behalf) for the Notes to be admitted to trading on the  London Stock Exchange’s regulated market and listing on  the Official List of the FCA and this is expected to be  effective from [  ].]     [Not Applicable]/ [  ]   (ii)  Estimate of total expenses  related to admission to trading:  [  ]   2.  Ratings   Ratings: The Notes to be issued [have been] [are expected to be]  rated:   [  ] by [  ]  [The Notes to be issued have not been rated.]  3.  Interests of Natural and Legal Persons Involved in the Issue   [Save for any fees payable to the [Managers/Dealers], so far as the Issuer is aware, no person involved  in the issue of the Notes has an interest material to the offer.]/[  ]  4.  Reasons for the Offer, Estimated Net Proceeds and Total Expenses   (i)  [Reasons for the offer [  ]   (ii)  Estimated net proceeds: [  ]   (iii)  Estimated total expenses: [  ]  5.  [Yield (Fixed Rate Notes only)]   Indication of yield: [  ]   6.  [Performance of Index and Other Information Concerning the Underlying (Indexed Notes only)   (i)    Name of underlying  index:  [UK Retail Price Index (RPI) (all items)] [UK Consumer Price  Index (CPI)][ UK Consumer Price Index Including Owner  Occupiers’ Housing Costs (CPIH)] published by the Office of  National Statistics   (ii)  Information about the  Index, its volatility and  past and future  performance can be  obtained from:  Information on [RPI][CPI][CPIH] can be found at  www.statistics.gov.uk]  

 

37     (iii) Final reference price of  the underlying:        [  ]   7.  Operational Information   (i)  ISIN Code: [  ]   (ii)  Common Code: [  ]   (iii)  [CFI: [  ][See the website of the Association of National  Numbering Agencies (ANNA) or alternatively sourced  from the responsible National Numbering Agency that  assigned the ISIN]   (iv)  [FISN: [  ][See the website of the Association of National  Numbering Agencies (ANNA) or alternatively sourced  from the responsible National Numbering Agency that  assigned the ISIN]  (If the CFI and/or FISN is not required, it/they should be  specified to be “Not Applicable”)   (v)  Any clearing system(s) other  than Euroclear Bank SA/NV  and Clearstream Banking S.A.  and the relevant identification  number(s):  [Not Applicable/[  ]   (vi)  Delivery: Delivery [against/free of] payment   (vii)  Names and addresses of  additional Paying Agent(s) (if  any):  [  ]    (viii)  [Intended to be held in a  manner which 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 international central securities depositories (ICSD) as  common safekeeper [, and registered in the name of a  nominee of one of the ICSDs acting as common safekeeper,  that is, held under the NSS,] 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  European Central Bank (the ECB) being satisfied that  Eurosystem eligibility criteria have been met.]/[No. Whilst  the designation is specified as “no” at the date of these Final  Terms, should the Eurosystem eligibility criteria be  amended in the future such that the Notes are capable of  meeting them the Notes may then be deposited with one of  the ICSDs as common safekeeper [, and registered in the  name of a nominee of one of the ICSDs acting as common  safekeeper, that is, held under the NSS]. Note that this does  not necessarily mean that the Notes will then be recognised  as eligible collateral for Eurosystem monetary policy and  intra day credit operations by the Eurosystem at any time  during their life. Such recognition will depend upon the  ECB being satisfied that Eurosystem eligibility criteria have  been met.]]   

 

38    8.  Distribution   (i)  Method of distribution: [Syndicated/Non-syndicated]   (ii)  If syndicated, names and  addresses of Managers):  [Not Applicable/give names, addresses]  (Include names and addresses of entities agreeing to  underwrite the issue on a firm commitment basis and names  and addresses of the entities agreeing to place the issue  without a firm commitment or on a “best efforts” basis if  such entities are not the same as the Managers.)   (iii)  Stabilisation Manager(s) (if  any):  [Not Applicable/give name]   (iv)  If non-syndicated, name and  address of relevant Dealer:  [Not Applicable/give name and address]   (v)  U.S. Selling Restrictions: [Reg. S Compliance Category [1/2/3]; TEFRA D/TEFRA  C/TEFRA not applicable]   (vi)  Prohibition of Sales to EEA  Retail Investors:  [Applicable/Not Applicable]     (If the Notes clearly do not constitute “packaged” products,  “Not Applicable” should be specified. If the Notes may  constitute “packaged” products and no key information  document will be prepared, “Applicable” should be  specified.)    

 

39    FORM OF PRICING SUPPLEMENT  Set out below is the form of Pricing Supplement which will be completed for each Tranche of Exempt  Notes.  [PROHIBITION OF SALES TO EEA RETAIL INVESTORS – The Notes are not intended, to be  offered, sold or otherwise made available to and should not be offered, sold or otherwise made available  to any retail investor in the European Economic Area (EEA). For these purposes, a retail investor means  a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive  2014/65/EU (as amended or superseded) (MiFID II); or (ii) a customer within the meaning of Directive  2016/97/EU (as amended or superseded) (the Insurance Distribution Directive), where that customer  would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii)  not a qualified investor as defined in Regulation (EU) 2017/1129 (as amended or superseded) (the  Prospectus Regulation). Consequently no key information document required by Regulation (EU) No  1286/2014 (as amended or superseded) (the PRIIPs Regulation) for offering or selling the Notes or  otherwise making them available to retail investors in the EEA has been prepared and therefore offering  or selling the Notes or otherwise making them available to any retail investor in the EEA may be  unlawful under the PRIIPs Regulation.]  [MIFID II product governance / Professional investors and ECPs only target market – Solely for  the purposes of [the/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 or  superseded) (MiFID II)/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 manufacturer[’s/s’] 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 manufacturer[’s/s’]  target market assessment) and determining appropriate distribution channels.]  Prohibition of sales to consumers in Belgium: The Notes are not intended to be offered, sold or  otherwise made available to, and should not be offered, sold or otherwise made available to, any  consumer (consument/consommateur) within the meaning of the Belgian Code of Economic Law  (Wetboek van economisch recht/Code de droit économique).  NO PROSPECTUS IS REQUIRED IN ACCORDANCE WITH REGULATION (EU) 2017/1129  (AS AMENDED OR SUPERSEDED) FOR THE ISSUE OF NOTES DESCRIBED BELOW.  [Date]  [Western Power Distribution (East Midlands) plc]/[Western Power Distribution (South Wales)  plc]/ [Western Power Distribution (South West) plc]/ [Western Power Distribution (West  Midlands) plc]  (the “Issuer”)  Legal Entity Identifier: [  ]  Issue of [Aggregate Nominal Amount of Tranche] [Title of Notes] (the “Notes”)  under the £4,000,000,000  Euro Medium Term Note Programme  Part A  Contractual Terms  

 

40    This document constitutes the Pricing Supplement for the Notes described herein. This document must  be read in conjunction with the Prospectus dated 12 August 2019 [as supplemented by the supplement[s]  dated [date[s]]] (the Prospectus). Full information on the Issuer and the offer of the Notes is only  available on the basis of the combination of this Pricing Supplement and the Prospectus. Copies of the  Prospectus may be obtained from [address].  Terms used herein shall be deemed to be defined as such for the purposes of the Conditions (the  Conditions) set forth in the Prospectus [dated [original date] which are incorporated by reference in  the Prospectus].  The Notes offered pursuant to this Pricing Supplement are offered pursuant to an exemption to  Prospectus Regulation (EU) 2017/1129, as amended or superseded. The FCA has neither approved nor  reviewed information contained in the Prospectus or this Pricing Supplement relating to the Notes  offered.  1 Issuer: [Western Power Distribution (East Midlands) plc/  Western Power Distribution (West Midlands)  plc/Western Power Distribution (South West)  plc/Western Power Distribution (South Wales) plc]  2 (i) Series Number: []   (ii) Tranche Number: []   (iii) Date on which the Notes  will be consolidated and form a  single Series  [The Notes will be consolidated and form a single  Series with [] on [the Issue Date/exchange of the  Temporary Global Note for interests in the Permanent  Global Note, as referred to in paragraph 28 below[,  which is expected to occur on or about []]][Not  Applicable]  3 Specified Currency or Currencies: []  4 Aggregate Nominal Amount:    (i) Series: []   (ii) Tranche: []  5 (i) Issue Price of Tranche: [] per cent. of the Aggregate Nominal Amount [plus  accrued interest from []]  6 (i) Specified  Denominations:  [●][[€/£100,000/$200,000] and integral multiples of  [€/£/$1,000] in excess thereof up to and including  [€/£199,000/$399,000]. No Notes in definitive form  will be issued with a denomination of integral multiples  above [€/£199,000/$399,000].]   (ii) Calculation Amount:  (Applicable to Notes in definitive  form)  []  7 (i) Issue Date: []   (ii) Interest Commencement  Date:  [●] [Issue Date] [Not Applicable]  

 

41    8 Maturity Date: []  9 Interest Basis: [[] per cent. Fixed Rate]  [[Reference Rate/[]] +/- []  per cent. Floating Rate]  [Zero Coupon]  [Index Linked Interest]  [(further particulars specified below)]  10 Redemption Basis: [Subject to any purchase and cancellation or early  redemption, the Notes will be redeemed on the Maturity  Date at [] per cent. of their nominal amount]  [Index Linked Redemption]  []  11 Change of Interest Basis or  Redemption/ Payment Basis:  [] [Not Applicable]  12 Put/Call Options: [Investor Put]  [Restructuring Put Option]   [Issuer Call]   [(further particulars specified below)]  13 Status of the Notes: Senior  14 [Date approval by Committee of  the Board of Directors for  issuance of Notes obtained:]  []  Provisions Relating to Interest (if any) Payable  15 Fixed Rate Note Provisions [Applicable/Not Applicable]   (i) Rate[(s)] of Interest: [] per cent. per annum [payable [annually/semi- annually/ quarterly/other (specify)] in arrear]   (ii) Interest Payment  Date(s):  [] in each year up to and including the Maturity  Date/[]   (iii) Fixed Coupon  Amount[(s)]: (Applicable to  Notes in definitive form)  [] per Calculation Amount   (iv) Broken Amount(s):  (Applicable to Notes in definitive  form)  [[] per Calculation Amount, payable on the Interest  Payment Date falling on []/Not Applicable]   (v) Day Count Fraction: [Actual/Actual (ISDA)] / [Actual/Actual]  [Actual/365 (Fixed)]  [Actual/365 (Sterling)]  [Actual/360]  [30/360] / [360/360] / [Bond Basis]  [30E/360] / [Eurobond Basis]  

 

42    [Actual/Actual ICMA]  [30E/360 (ISDA)]   (vi) Determination Date(s): [] in each year  16 Floating Rate Note Provisions [Applicable/Not Applicable]   (i) Specified Period(s) []   (ii) Specified Interest  Payment Dates:  [] in each year[, subject to adjustment in accordance  with the Business Day Convention set out in paragraph  (iv) below]   (iii) First Interest Payment  Date  []   (iv) Business Day  Convention:  [Floating Rate Convention/Following Business Day  Convention/Modified Following Business Day  Convention/Preceding Business Day Convention]   (v) Additional Business  Centre(s):  []   (vi) Manner in which the  Rate of Interest and Interest  Amount is to be determined:  [Screen Rate Determination/ISDA Determination]   (vii) Party responsible for  calculating the Rate of Interest  and Interest Amount (if not the  Agent):  []   (viii) Screen Rate  Determination:  [Applicable/Not Applicable]   - Reference Rate: [[●] is provided by [administrator legal name] [repeat  as necessary].] [As at the date hereof, [administrator  legal name] [appears]/[does not appear] [repeat as  necessary] in the register of administrators and  benchmarks established and maintained by ESMA  pursuant to Article 36 (Register of administrators and  benchmarks) of Regulation (EU) 2016/1011, as  amended or superseded]/[As far as the Issuer is aware,  as at the date hereof, the [specify benchmark] does not  fall within the scope of Regulation (EU) 2016/1011, as  amended or superseded] / [Not Applicable]   - Interest Determination  Date(s):  []   - Relevant Screen  Page:  []   - Relevant Time: []   (ix) ISDA Determination: [Applicable/Not Applicable]  

 

43     - Floating Rate Option: []   - Designated Maturity: []   - Reset Date: []   - (In the case of a LIBOR or EURIBOR based option, the  first day of the Interest Period)   (N.B. The fall-back provisions applicable to ISDA  Determination under the 2006 ISDA Definitions are  reliant upon the provision by reference banks of offered  quotations for LIBOR and/or EURIBOR which,  depending on market circumstances, may not be  available at the relevant time)   (x) Linear Interpolation [Not Applicable/Applicable – the Rate of interest for  the [long/short] [first/last] Interest Period shall be  calculated using Linear Interpolation (specify for each  short or long interest period)]   (xi) Margin(s): [+/-] [] per cent. per annum   (xii) Minimum Rate of  Interest:  [] per cent. per annum   (xiii) Maximum Rate of  Interest:  [] per cent. per annum   (xiv) Day Count Fraction: [Actual/Actual (ISDA)] / [Actual/Actual]  [Actual/365 (Fixed)]  [Actual/365 (Sterling)]  [Actual/360]  [30/360] / [360/360] / [Bond Basis]  [30E/360] / [Eurobond Basis]  [Actual/Actual ICMA]  [30E/360 (ISDA)]  17 Zero Coupon Note Provisions [Applicable/Not Applicable]   (i) Accrual Yield: [] per cent. Per annum   (ii) Amortisation Yield: []   (iii) Any other  formulas/basis of determining  amount payable for Zero Coupon  Notes which are Exempt Notes  []  [Condition 6(b) (Early Redemption) applies]   (iv) Day Count Fraction in  relation to Early Redemption  Amounts:  [Actual/Actual (ISDA)] / [Actual/Actual]  [Actual/365 (Fixed)]  [Actual/365 (Sterling)]  [Actual/360]  [30/360] / [360/360] / [Bond Basis]  [30E/360] / [Eurobond Basis]  

 

44    [Actual/Actual ICMA]  [30E/360 (ISDA)]  18 Index Linked Interest Note  Provisions  [Applicable/Not Applicable]   (i) Index/Formula: [UK Retail Price Index][UK Consumer Price  Index][UK Consumer Price Index Including Owner  Occupiers’ Housing Costs]     (ii) Rate of Interest: [Fixed, calculated in accordance with paragraph 15  above][Floating, calculated in accordance with  paragraph 16 above]   (iii) Minimum Indexation  Factor:  [Not Applicable][]   (iv) Maximum Indexation  Factor:  [Not Applicable][]   (v) Base Index Figure: []   (vi) Limited Indexation  Month(s):  []/[Not Applicable]   (vii) Reference Gilt: [[] per cent. Index-Linked Treasury Stock due  []][Not Applicable]   (viii) Index Figure applicable [3][8] months lag  19 Ratings Downgrade Rate  Adjustment  [Applicable/Not Applicable]  Provisions Relating to Redemption   20 Index Linked Redemption  Provisions  [Applicable/Not Applicable]   (i) Index/Formula: [UK Retail Price Index] [UK Consumer Price  Index][UK Consumer Price Index Including Owner  Occupiers’ Housing Costs]   (ii) Minimum Indexation  Factor:  [Not Applicable][]   (iii) Maximum Indexation  Factor:  [Not Applicable][]   (iv) Base Index Figure: []   (v) Reference Gilt: [[] per cent. Index-Linked Treasury Stock due  []][Not Applicable]   (vi) Index Figure applicable [3][8] months lag  

 

45     (vii) Redeemable in part: [Applicable/Not Applicable]    (1) Minimum Redemption  Amount:  []    (2) Maximum Redemption  Amount:  []  21 Issuer Call [Applicable/Not Applicable]   (i) Optional Redemption  Date(s):  []   (ii) Optional Redemption  Amount(s):  [[] per Calculation Amount]   (iii) Redeemable in part: [Applicable/Not Applicable]   (iv) Minimum Redemption  Amount:  []   (v) Maximum Redemption  Amount:  []  22 Investor Put [Applicable (Condition [6(h) (Redemption at the Option  of Noteholders)]applies]/Not Applicable]   (i) Optional Redemption  Date(s):  [[]   (ii) Notice Period: []/[Refer to Condition 6(h) (Redemption at the Option  of Noteholders)]   (iii) Optional Redemption  Amount(s):  [[] per Calculation Amount ]  23 [Restructuring Put Option] [Applicable [6(i) (Redemption at the Option of the  Noteholders on a Restructuring Event) applies]/Not  Applicable]   (i) Optional Redemption  Date(s):  [On the Put Date (as specified in the relevant Put Event  Notice) (where Condition (6(i) (Redemption at the  Option of the Noteholders on a Restructuring Event))]   (ii) Notice Period: [] (in accordance with Condition 18 (Notices))   (iii) Optional Redemption  Amount(s):  [[] per Calculation Amount ]  24 Final Redemption Amount: [[] per Calculation Amount]  25 Early Redemption Amount  payable on redemption for  taxation reasons or on event of  default and/or the method of  calculating the same (if required):  [[] per Calculation Amount]  

 

46    26 Pre-Maturity Call Option: [Applicable (Condition [6(f) (Pre-Maturity Call Option  by the Issuer)] applies/Not Applicable]  27 Clean-up Call Option: [Applicable (Condition [6(g) (Clean-up Call Option by  the Issuer)] applies/Not Applicable]  28 Make-whole: [Applicable (Condition [6(e) (Redemption at the Option  of the Relevant Issuer) applies]/Not Applicable]  (i) Make-Whole Redemption  Margin:  []  (ii) Notice Period: []/[Refer to Condition 6(e) (Redemption at the Option  of the Relevant Issuer)]  (iii) Make-Whole Reference  Bond:  []  (iv) Reference Dealers: []  (v) Quotation Time: []  (vi) Determination Date: []  (vii) If redeemable in part:  (a) Minimum Redemption  Amount:  (b) Maximum Redemption  Amount:    [] per Calculation Amount  [] per Calculation Amount  General Provisions Applicable to the Notes  29 Form of Notes: [Bearer/Registered]   (i) if issued in Bearer form: [Temporary Global Note exchangeable for a permanent  Global Note which is exchangeable for Definitive  Notes in the limited circumstances specified in the  permanent Global Note.]   [Temporary Global Note exchangeable for Definitive  Notes on [] days’ notice.]   [Permanent Global Note exchangeable for Definitive  Notes in the limited circumstances specified in the  permanent Global Note.]   (ii) if issued in registered  form:  [Global Certificate registered in the name of a nominee  for [a common depositary for Euroclear and  Clearstream, Luxembourg/a common safekeeper for  Euroclear and Clearstream, Luxembourg (that is, held  under the NSS) exchangeable for Certificates on []  days’ notice in the circumstances specified in the  Global Certificate]  New Global Note/NSS: [Yes] [No]  

 

47    30 Additional Financial Centre(s) or  other special provisions relating  to payment dates:  [Not Applicable/[]]  31 Talons for future Coupons to be  attached to Definitive Notes:  [Yes, as the Notes have more than 27 coupon payments,  Talons may be required if, on exchange into definitive  form, more than 27 coupon payments are still to be  made]/[No]  32 Other terms or special conditions: [Not Applicable/give details]        

 

48    RESPONSIBILITY  The Issuer accepts responsibility for the information contained in this Pricing Supplement. [[Relevant  third party information] has been extracted from [specify source]. The Issuer confirms that such  information has been accurately reproduced and that, so far as it is aware and is able to ascertain from  information published by [specify source], no facts have been omitted which would render the  reproduced information inaccurate or misleading].  Signed on behalf of  [Western Power Distribution (East Midlands) plc]  [Western Power Distribution (West Midlands) plc]  [Western Power Distribution (South West) plc]  [Western Power Distribution (South Wales) plc]  

 

49    Other Information    1 Listing and Admission to Trading   (i) Listing and admission to trading: [Not Applicable]/[]  (ii) Estimate of total expenses related  to admission to trading:  []  2 Ratings   Ratings: The Notes to be issued [have been] [are expected to be]  rated:   [] by []   [The Notes to be issued have not been rated.]  3 Interests of Natural and Legal Persons Involved in the Issue  [Save for any fees payable to the [Managers/Dealers], so far as the Issuer is aware, no person  involved in the issue of the Notes has an interest material to the offer.]/[]  4 Reasons for the Offer, Estimated Net Proceeds and Total Expenses  [Reasons for the offer []  Estimated net proceeds: []  Estimated total expenses: []  5 [Yield (Fixed Rate Notes only)]   Indication of yield: []  6 [Performance of Index and Other Information Concerning the Underlying (Indexed Notes  only)  (i) Name of underlying index: [UK Retail Price Index (RPI) (all items)] [UK  Consumer Price Index (CPI)][ UK Consumer Price  Index Including Owner Occupiers’ Housing Costs  (CPIH)] published by the Office of National Statistics  (ii) Information about the Index, its  volatility and past and future  performance can be obtained  from:  Information on [RPI][CPI][CPIH] can be found at  www.statistics.gov.uk  (iii) Final reference price of the  underlying:  []  7 Operational Information   (i) ISIN Code: []  

 

50    (ii) Common Code: []  (iii) [CFI: [See the website of the Association of National  Numbering Agencies (ANNA) or alternatively sourced  from the responsible National Numbering Agency that  assigned the ISIN]  (iv) [FISN: [See the website of the Association of National  Numbering Agencies (ANNA) or alternatively sourced  from the responsible National Numbering Agency that  assigned the ISIN]   (If the CFI and/or FISN is not required, it/they should  be specified to be “Not Applicable”)  (v) Any clearing system(s) other than  Euroclear Bank SA/NV and  Clearstream Banking S.A. and the  relevant identification number(s):  [Not Applicable/[]  (vi) Delivery: Delivery [against/free of] payment  (vii) Names and addresses of additional  Paying Agent(s) (if any):  []  (viii) Intended to be held in a manner  which would allow Eurosystem  eligibility:  [Yes] [No]  [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 registered in  the name of a nominee of one of the ICSDs acting as  common safekeeper, that is, held under the NSS,] 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  satisfaction of the Eurosystem eligibility criteria.]  [Note that whilst the designation is specified as “no” at  the date of this Pricing Supplement, should the  Eurosystem eligibility criteria be amended in the future  such that the Notes are capable of meeting them the  Notes may then be deposited with one of the ICSDs as  common safekeeper[, and registered in the name of a  nominee of one of the ICSDs acting as common  safekeeper, that is, held under the NSS]. Note that this  does not necessarily mean that the Notes will then be  recognised as eligible collateral for Eurosystem  monetary policy and intra day credit operations by the  Eurosystem at any time during their life. Such  recognition will depend upon the ECB being satisfied  that Eurosystem eligibility criteria have been met.]  8 Distribution   

 

51    (i) Method of distribution: [Syndicated/Non-syndicated]  (ii) If syndicated, names of  Managers  [Not Applicable/[]  (iii) Stabilisation Manager(s) (if any) [Not Applicable/[]  (iv) If non-syndicated, name of  relevant Dealer:  []  (v) U.S. Selling Restrictions [Reg. S Compliance Category 2; TEFRA D/TEFRA  C/TEFRA not applicable]  (vi) Prohibition of Sales to EEA Retail  Investors:  [Applicable/Not Applicable]   (If the Notes clearly do not constitute “packaged”  products, “Not Applicable” should be specified. If the  Notes may constitute “packaged” products and no key  information document will be prepared, “Applicable”  should be specified.)        

 

52    TERMS AND CONDITIONS OF THE NOTES  The following is the text of the terms and conditions that, subject to completion in accordance with the  provisions of Part A of the relevant Final Terms, shall be applicable to the Notes in definitive form (if  any) issued in exchange for the Global Note(s) representing each Series. Either (i) the full text of these  terms and conditions together with the relevant provisions of Part A of the Final Terms or (ii) these  terms and conditions as so completed (and subject to simplification by the deletion of non-applicable  provisions), shall be endorsed on such Bearer Notes or on the Certificates relating to such Registered  Notes. All capitalised terms that are not defined in these Conditions will have the meanings given to  them in Part A of the relevant Final Terms. Those definitions will be endorsed on the definitive Notes  or Certificates, as the case may be. References in the Conditions to “Notes” are to the Notes of one  Series only, not to all Notes that may be issued under the Programme.  The Notes (as defined below) are constituted by, are subject to, and have the benefit of, an amended  and restated trust deed dated on 12 August 2019 (as amended or supplemented from time to time, the  Trust Deed) between Western Power Distribution (East Midlands) plc (WPDE), Western Power  Distribution (West Midlands) plc (WPDW), Western Power Distribution (South West) plc (WPD  South West) and Western Power Distribution (South Wales) plc (WPD South Wales and, together  with WPDE, WPDW and WPD South West, the Issuers and each an Issuer) and HSBC Corporate  Trustee Company (UK) Limited (the Note Trustee, which expression shall include all persons for the  time being the trustee or trustees under the Trust Deed) as trustee for the Noteholders (as defined below).  Notes issued by each Issuer are obligations solely of that Issuer (the Relevant Issuer) and without  recourse whatsoever to any other Issuer. These terms and conditions (the Conditions) include  summaries of, and are subject to, the detailed provisions of the Trust Deed, which includes the form of  the Registered Notes, Bearer Notes, Certificates, Coupons and Talons referred to below. An amended  and restated agency agreement dated on 10 September 2013 (as amended or supplemented from time  to time, the Agency Agreement) has been entered into in relation to the Notes between the Issuers, the  Note Trustee, HSBC Bank plc as issuing and paying agent and the other agents named in it. The issuing  and paying agent, the other paying agents, the registrar, the transfer agents and the calculation agent(s)  for the time being (if any) are referred to below respectively as the Issuing and Paying Agent, the  Paying Agents (which expression shall include the Issuing and Paying Agent, the Registrar, the  Transfer Agents (which expression shall include the Registrar) and the Calculation Agent(s). Copies  of the Trust Deed, the Agency Agreement and the Prospectus are available for inspection during usual  business hours at the principal office of the Note Trustee (presently at 8 Canada Square, London E14  5HQ) and at the specified offices of the Paying Agents and the Transfer Agents.  Notes means the euro medium term notes issued by the Issuers constituted by the Trust Deed and for  the time being outstanding. References herein to the Notes shall be references to the relevant Series of  Notes only.  The Noteholders, the holders of the interest coupons (the Coupons) relating to interest bearing Notes  in bearer form and, where applicable in the case of such Notes, talons for further Coupons (the Talons)  (the Couponholders) are entitled to the benefit of, are bound by, and are deemed to have notice of, all  the provisions of the Trust Deed and are deemed to have notice of those provisions applicable to them  of the Agency Agreement.  As used in these Conditions, Tranche means Notes which are identical in all respects and Series means  a series of Notes comprising of one or more Tranches of Notes which are identical save for the issue  date, issue price and/or the first payment of interest.  Any reference in these Conditions to Final Terms shall be deemed to include a reference to Pricing  Supplement, where relevant.  

 

53    1. Form, Denomination and Title  The Notes are issued in bearer form (Bearer Notes) or in registered form (Registered Notes)  in each case in the Specified Denomination(s) shown in the Final Terms provided that in the  case of any Notes which are to be admitted to trading on a regulated market within the European  Economic Area or offered to the public in a Member State of the European Economic Area in  circumstances which require the publication of a Prospectus under the Prospectus Regulation,  the minimum Specified Denomination shall be €100,000 (or its equivalent in any other currency  as at the date of issue of the relevant Notes).  All Registered Notes shall have the same Specified Denomination.  Unless the Note is an Exempt Note, the Note may be a Fixed Rate Note, a Floating Rate Note,  a Zero Coupon Note, an Index Linked Interest Note, an Index Linked Redemption Note or a  combination of any of the foregoing or any other kind of Note, depending upon the Interest and  Redemption/Payment Basis shown in the Final Terms.  If the Note is an Exempt Note, the Note may be a Fixed Rate Note, a Floating Rate Note, a Zero  Coupon Note, an Index Linked Interest Note, an Index Linked Redemption Note or a  combination of any of the foregoing or any other kind of Note, depending upon the Interest and  Redemption/Payment Basis shown in the Pricing Supplement.  Bearer Notes are serially numbered and are issued with Coupons (and, where appropriate, a  Talon) attached, save in the case of Zero Coupon Notes in which case references to interest  (other than in relation to interest due after the Maturity Date), Coupons and Talons in these  Conditions are not applicable.  Registered Notes are represented by registered certificates (Certificates) and, save as provided  in Condition 2(c) (Exercise of Options or Partial Redemption in Respect of Registered Notes),  each Certificate shall represent the entire holding of Registered Notes by the same holder.  Title to the Bearer Notes and the Coupons and Talons shall pass by delivery. Title to the  Registered Notes shall pass by registration in the register that the Issuers shall procure to be  kept by the Registrar in accordance with the provisions of the Agency Agreement (the  Register). Except as ordered by a court of competent jurisdiction or as required by law, the  holder (as defined below) of any Note, Coupon or Talon shall be deemed to be and may be  treated as its absolute owner for all purposes whether or not it is overdue and regardless of any  notice of ownership, trust or an interest in it, any writing on it (or on the Certificate representing  it) or its theft or loss (or that of the related Certificate) and no person shall be liable for so  treating the holder.  In these Conditions, Noteholder means the bearer of any Bearer Note or the person in whose  name a Registered Note is registered (as the case may be), holder (in relation to a Note, Coupon  or Talon) means the bearer of any Bearer Note, Coupon or Talon or the person in whose name  a Registered Note is registered (as the case may be) and capitalised terms have the meanings  given to them in the Final Terms, the absence of any such meaning indicating that such term is  not applicable to the Notes.  For so long as any of the Notes is represented by a Global Note held on behalf of Euroclear  and/or Clearstream, Luxembourg, each person (other than Euroclear or Clearstream,  Luxembourg) who is for the time being shown in the records of Euroclear, Clearstream,  Luxembourg as the holder of a particular nominal amount of such Notes (in which regard any  certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the  nominal amount of such Notes standing to the account of any person shall be conclusive and  binding for all purposes save in the case of manifest error) shall be treated by the Issuer, the  Note Trustee and the Agents as the holder of such nominal amount of such Notes for all  

 

54    purposes other than with respect to the payment of principal or interest on such nominal amount  of such Notes, for which purpose the bearer of the relevant Bearer Global Note or the registered  holder of the relevant Registered Global Note shall be treated by the Issuer, the Note Trustee  and any Agent as the holder of such nominal amount of such Notes in accordance with and  subject to the terms of the relevant Global Note and the expressions Noteholder and holder of  Notes and related expressions shall be construed accordingly.  2. No Exchange of Notes and Transfers of Registered Notes  (a) No Exchange of Notes: Registered Notes may not be exchanged for Bearer Notes.  Bearer Notes of one Specified Denomination may not be exchanged for Bearer Notes  of another Specified Denomination. Bearer Notes may not be exchanged for Registered  Notes.  (b) Transfer of Registered Notes: One or more Registered Notes may be transferred upon  the surrender (at the specified office of the Registrar or any Transfer Agent) of the  Certificate representing such Registered Notes to be transferred, together with the form  of transfer endorsed on such Certificate, (or another form of transfer substantially in the  same form and containing the same representations and certifications (if any), unless  otherwise agreed by the Relevant Issuer), duly completed and executed and any other  evidence as the Registrar or Transfer Agent may reasonably require. In the case of a  transfer of part only of a holding of Registered Notes represented by one Certificate, a  new Certificate shall be issued to the transferee in respect of the part transferred and a  further new Certificate in respect of the balance of the holding not transferred shall be  issued to the transferor. All transfers of Notes and entries on the Register will be made  subject to the detailed regulations concerning transfers of Notes scheduled to the  Agency Agreement. The regulations may be changed by the Issuers, with the prior  written approval of the Registrar and the Note Trustee. A copy of the current regulations  will be made available by the Registrar to any Noteholder upon request.  (c) Exercise of Options or Partial Redemption in Respect of Registered Notes: In the  case of an exercise of a Relevant Issuer’s or Noteholders’ option in respect of, or a  partial redemption of, a holding of Registered Notes represented by a single Certificate,  a new Certificate shall be issued to the holder to reflect the exercise of such option or  in respect of the balance of the holding not redeemed. In the case of a partial exercise  of an option resulting in Registered Notes of the same holding having different terms,  separate Certificates shall be issued in respect of those Notes of that holding that have  the same terms. New Certificates shall only be issued against surrender of the existing  Certificates to the Registrar or any Transfer Agent. In the case of a transfer of  Registered Notes to a person who is already a holder of Registered Notes, a new  Certificate representing the enlarged holding shall only be issued against surrender of  the Certificate representing the existing holding.  (d) Delivery of New Certificates: Each new Certificate to be issued pursuant to Conditions  2(b) (Transfer of Registered Notes) or (c) (Exercise of Options or Partial Redemption  in Respect of Registered Notes) shall be available for delivery within three business  days of receipt of the form of transfer or Exercise Notice (as defined in Condition 6(h)  (Redemption at the Option of Noteholders)) and surrender of the Certificate for  exchange. Delivery of the new Certificate(s) shall be made at the specified office of the  Transfer Agent or of the Registrar (as the case may be) to whom delivery or surrender  of such form of transfer, Exercise Notice or Certificate shall have been made or, at the  option of the holder making such delivery or surrender as aforesaid and as specified in  the relevant form of transfer, Exercise Notice or otherwise in writing, be mailed by  uninsured post at the risk of the holder entitled to the new Certificate to such address  as may be so specified, unless such holder requests otherwise and pays in advance to  

 

55    the relevant Transfer Agent the costs of such other method of delivery and/or such  insurance as it may specify. In this Condition 2(d) (Delivery of New Certificates),  business day means a day, other than a Saturday or Sunday, on which banks are open  for business in the place of the specified office of the relevant Transfer Agent or the  Registrar (as the case may be).  (e) Transfers Free of Charge: Transfers of Notes and Certificates on registration, transfer,  exercise of an option or partial redemption shall be effected without charge by or on  behalf of the Relevant Issuer, the Registrar or the Transfer Agents, but upon payment  of any tax or other governmental charges that may be imposed in relation to it (or the  giving of such indemnity as the Registrar or the relevant Transfer Agent may require).  (f) Closed Periods: No Noteholder may require the transfer of a Registered Note to be  registered (i) during the period of 15 days ending on the due date for redemption of that  Note, (ii) during the period of 15 days prior to any date on which Notes may be called  for redemption by the Relevant Issuer at its option pursuant to Conditions 6(e)  (Redemption at the Option of the Relevant Issuer), (f) (Pre-Maturity Call Option by the  Issuer) or (g) (Clean-up Call Option by the Issuer), (iii) after any such Note has been  called for redemption or (iv) during the period of seven days ending on (and including)  any Record Date.  3. Status  The Notes and the Coupons relating to them constitute (subject to Condition 4 (Negative Pledge  and Restriction on Distribution of Dividends)) direct, general, unconditional and unsecured  obligations of the Issuers and shall at all times rank pari passu and without any preference  among themselves. The payment obligations of the Issuers under the Notes and the Coupons  relating to them shall, save for such exceptions as may be provided by applicable legislation  and subject to Condition 4 (Negative Pledge and Restriction on Distribution of Dividends), at  all times rank at least equally with all other unsecured and unsubordinated indebtedness of the  Issuers present and future.   4. Negative Pledge and Restriction on Distribution of Dividends  (a) Negative Pledge: So long as any Note or Coupon remains outstanding (as defined in  the Trust Deed), the Relevant Issuer will ensure that no Relevant Indebtedness (as  defined below) of the Relevant Issuer and no guarantee by the Relevant Issuer of any  Relevant Indebtedness of any person will be secured by a mortgage, charge, lien,  pledge or other security interest (each a Security Interest) upon, or with respect to,  any of the present or future business, undertaking, assets or revenues (including any  uncalled capital) of the Relevant Issuer unless the Relevant Issuer, before or at the same  time as the creation of the Security Interest, takes any and all action necessary to ensure  that:  (i) all amounts payable by the Relevant Issuer under the Notes, the Coupons and  the Trust Deed are secured equally and rateably with the Relevant Indebtedness  or guarantee, as the case may be, by the same Security Interest, in each case to  the satisfaction of the Note Trustee; or  (ii) such other Security Interest or guarantee or other arrangement (whether or not  including the giving of a Security Interest) is provided in respect of all amounts  payable by the Relevant Issuer under the Notes, the Coupons and the Trust  Deed either (A) as the Note Trustee shall in its absolute discretion deem not  materially less beneficial to the interests of the Noteholders or (B) as shall be  approved by an Extraordinary Resolution (as defined in the Trust Deed) of the  Noteholders.  

 

56    (b) Restriction on distribution of dividends: So long as any Note or Coupon remains  outstanding (as defined in the Trust Deed), the Relevant Issuer shall not at any time  declare or make a distribution (as defined in Section 1000 of the Corporation Tax Act  2010) or grant a loan or any other credit facility to any of its shareholders unless (1)  immediately following the occurrence of any such event, the Net Debt (as defined  below) at such time would not exceed 85 per cent. of the Regulatory Asset Base relating  to the year in which the relevant distribution or grant was first declared or made; and  (2) written certification thereof, signed by two directors of the Relevant Issuer, has been  provided to the Note Trustee on or prior to such distribution or grant. Such certification  may be relied upon by the Note Trustee without further enquiry or evidence and, if  relied upon by the Note Trustee, shall be conclusive and binding on all parties whether  or not addressed to each such party.  (c) Definitions: In this Condition:  borrowed money means (i) money borrowed, (ii) liabilities under or in respect of any  acceptance or acceptance credit or (iii) any notes, bonds, debentures, debenture stock,  loan stock or other securities offered, issued or distributed whether by way of public  offer, private placing, acquisition consideration or otherwise and whether issued for  cash or in whole or in part for a consideration other than cash.  Net Debt at any time, means the aggregate amount of all indebtedness for borrowed  money of the Relevant Issuer at such time less the aggregate of:  (i) amounts credited to current accounts or deposits and certificates of deposit  (with a term not exceeding three months) at, or issued by, any bank, building  society or other financial institution;  (ii) cash in hand;  (iii) the lower of book and market value (calculated, where relevant, by reference  to their bid price) of gilts issued by the United Kingdom Government; and  (iv) subordinated intra-group items, loans from Affiliates (as defined in Condition  7 below) and shareholder loans,  in each case beneficially owned by the Relevant Issuer and in each case so that no  amount shall be included or excluded more than once.  Regulatory Asset Base means in respect of any year, the regulatory asset base of the  Relevant Issuer most recently published and as last determined and notified to the  Relevant Issuer in respect of such year by the Great Britain Office of the Gas and  Electricity Markets (Ofgem) or any successor of Ofgem (interpolated as necessary and  adjusted for additions to the regulatory asset base of the Relevant Issuer and adjusted  as appropriate for out-term inflation/regulatory depreciation in respect of the Relevant  Issuer).  Relevant Indebtedness means:  (i) any present or future indebtedness (whether being principal, premium, interest  or other amounts) in the form of or represented by bonds, notes, debentures,  debenture stock, loan stock or other securities, whether issued for cash or in  whole or in part for a consideration other than cash, and which are or are  capable of being quoted, listed or ordinarily dealt in on any stock exchange or  recognised over-the-counter or other securities market;  

 

57    (ii) monies borrowed or raised from, or any acceptance credit opened by, a bank,  building society or other financial institution; and  (iii) any leasing or hire purchase agreement which would be treated as a finance  lease in the accounts of the relevant person.  Any reference to an obligation being “guaranteed” shall include a reference to an  indemnity being given in respect of that obligation.  5. Interest and other Calculations  (a) Interest on Fixed Rate Notes: Each Fixed Rate Note bears interest on its outstanding  nominal amount from the Interest Commencement Date at the rate per annum  (expressed as a percentage) equal to the Rate of Interest, such interest being payable in  arrear on each Interest Payment Date. The amount of interest payable shall be  determined in accordance with Condition 5(f) (Calculations).  (b) Interest on Floating Rate Notes:  (i) Interest Payment Dates: Each Floating Rate Note bears interest on its  outstanding nominal amount from the Interest Commencement Date at the rate  per annum (expressed as a percentage) equal to the Rate of Interest, such  interest being payable in arrear on each Interest Payment Date. The amount of  interest payable shall be determined in accordance with Condition 5(f)  (Calculations). Such Interest Payment Date(s) is/are either shown in the Final  Terms as Specified Interest Payment Dates or, if no Specified Interest Payment  Date(s) is/are shown in the Final Terms, Interest Payment Date shall mean each  date which falls the number of months or other period shown in the Final Terms  as the Interest Period after the preceding Interest Payment Date or, in the case  of the first Interest Payment Date, after the Interest Commencement Date.  (ii) Business Day Convention: If any date referred to in these Conditions that is  specified to be subject to adjustment in accordance with a Business Day  Convention would otherwise fall on a day that is not a Business Day, then, if  the Business Day Convention specified is (A) the Floating Rate Business Day  Convention, such date shall be postponed to the next day that is a Business Day  unless it would thereby fall into the next calendar month, in which event (x)  such date shall be brought forward to the immediately preceding Business Day  and (y) each subsequent such date shall be the last Business Day of the month  in which such date would have fallen had it not been subject to adjustment, (B)  the Following Business Day Convention, such date shall be postponed to the  next day that is a Business Day, (C) the Modified Following Business Day  Convention, such date shall be postponed to the next day that is a Business Day  unless it would thereby fall into the next calendar month, in which event such  date shall be brought forward to the immediately preceding Business Day or  (D) the Preceding Business Day Convention, such date shall be brought  forward to the immediately preceding Business Day.  (iii) Rate of Interest for Floating Rate Notes: The Rate of Interest in respect of  Floating Rate Notes for each Interest Accrual Period shall be determined in the  manner specified in the Final Terms and the provisions below relating to either  ISDA Determination or Screen Rate Determination shall apply, depending  upon which is specified in the Final Terms.  (A) ISDA Determination for Floating Rate Notes  

 

58    Where ISDA Determination is specified in the Final Terms as the  manner in which the Rate of Interest is to be determined, the Rate of  Interest for each Interest Accrual Period shall be determined by the  Calculation Agent as a rate equal to the relevant ISDA Rate. For the  purposes of this sub-paragraph (A), ISDA Rate for an Interest Accrual  Period means a rate equal to the Floating Rate that would be determined  by the Calculation Agent under a Swap Transaction under the terms of  an agreement incorporating the ISDA Definitions and under which:  (x) the Floating Rate Option is as specified in the relevant Final  Terms  (y) the Designated Maturity is a period specified in the relevant  Final Terms and  (z) the relevant Reset Date is the first day of that Interest Accrual  Period unless otherwise specified in the relevant Final Terms.  For the purposes of this sub-paragraph (A), Floating Rate,  Calculation Agent, Floating Rate Option, Designated Maturity,  Reset Date and Swap Transaction have the meanings given to those  terms in the ISDA Definitions.  (B) Screen Rate Determination for Floating Rate Notes  (x) Where Screen Rate Determination is specified in the Final  Terms as the manner in which the Rate of Interest is to be  determined, the Rate of Interest for each Interest Accrual  Period will, subject as provided below, be either:  (1) the offered quotation; or  (2) the arithmetic mean of the offered quotations,  (expressed as a percentage rate per annum) for the Reference  Rate (being either LIBOR or EURIBOR, as specified in the  applicable Final Terms) which appears or appear, as the case  may be, on the Relevant Screen Page as at either 11.00 a.m.  (London time in the case of LIBOR or Brussels time in the case  of EURIBOR) on the Interest Determination Date in question  as determined by the Calculation Agent. If five or more of such  offered quotations are available on the Relevant Screen Page,  the highest (or, if there is more than one such highest quotation,  one only of such quotations) and the lowest (or, if there is more  than one such lowest quotation, one only of such quotations)  shall be disregarded by the Calculation Agent for the purpose  of determining the arithmetic mean of such offered quotations.  If the Reference Rate from time to time in respect of Floating  Rate Notes is specified in the Final Terms as being other than  LIBOR or EURIBOR, the Rate of Interest in respect of such  Notes will be determined as provided in the Final Terms.  (y) if the Relevant Screen Page is not available, or if sub-paragraph  (x)(1) applies and no such offered quotation appears on the  Relevant Screen Page or if sub paragraph (x)(2) above applies  

 

59    and fewer than three such offered quotations appear on the  Relevant Screen Page in each case as at the time specified  above, subject as provided below, the Calculation Agent shall  request, if the Reference Rate is LIBOR, the principal London  office of each of the Reference Banks or, if the Reference Rate  is EURIBOR, the principal Euro-zone office of each of the  Reference Banks, to provide the Calculation Agent with its  offered quotation (expressed as a percentage rate per annum)  for the Reference Rate if the Reference Rate is LIBOR, at  approximately 11.00 a.m. (London time), or if the Reference  Rate is EURIBOR, at approximately 11.00 a.m. (Brussels time)  on the Interest Determination Date in question. If two or more  of the Reference Banks provide the Calculation Agent with  such offered quotations, the Rate of Interest for such Interest  Accrual Period shall be the arithmetic mean of such offered  quotations as determined by the Calculation Agent; and  (z) if paragraph (y) above applies and the Calculation Agent  determines that fewer than two Reference Banks are providing  offered quotations, subject as provided below, the Rate of  Interest shall be the arithmetic mean of the rates per annum  (expressed as a percentage) as communicated to (and at the  request of) the Calculation Agent by the Reference Banks or  any two or more of them, at which such banks were offered, if  the Reference Rate is LIBOR, at approximately 11.00 a.m.  (London time) or, if the Reference Rate is EURIBOR, at  approximately 11.00 a.m. (Brussels time) on the relevant  Interest Determination Date, deposits in the Specified  Currency for a period equal to that which would have been used  for the Reference Rate by leading banks in, if the Reference  Rate is LIBOR, the London inter-bank market or, if the  Reference Rate is EURIBOR, the Euro-zone inter-bank  market, as the case may be, or, if fewer than two of the  Reference Banks provide the Calculation Agent with such  offered rates, the offered rate for deposits in the Specified  Currency for a period equal to that which would have been used  for the Reference Rate, or the arithmetic mean of the offered  rates for deposits in the Specified Currency for a period equal  to that which would have been used for the Reference Rate, at  which, if the Reference Rate is LIBOR, at approximately 11.00  a.m. (London time) or, if the Reference Rate is EURIBOR, at  approximately 11.00 a.m. (Brussels time), on the relevant  Interest Determination Date, any one or more banks (which  bank or banks is or are in the opinion of the Note Trustee and  the Relevant Issuer suitable for such purpose) informs the  Calculation Agent it is quoting to leading banks in, if the  Reference Rate is LIBOR, the London inter-bank market or, if  the Reference Rate is EURIBOR, the Euro-zone inter-bank  market, as the case may be, provided that, if the Rate of Interest  cannot be determined in accordance with the foregoing  provisions of this paragraph, the Rate of Interest shall be  determined as at the last preceding Interest Determination Date  (though substituting, where a different Margin or Maximum or  Minimum Rate of Interest is to be applied to the relevant  Interest Accrual Period from that which applied to the last  

 

60    preceding Interest Accrual Period, the Margin or Maximum or  Minimum Rate of Interest relating to the relevant Interest  Accrual Period, in place of the Margin or Maximum or  Minimum Rate of Interest relating to that last preceding  Interest Accrual Period).  (C) Benchmark Replacement: In addition, notwithstanding the provisions  above in this Condition 5(b)(iii) (Rate of Interest for Floating Rate  Notes), if the Issuer determines that the relevant Reference Rate  specified in the relevant Final Terms has ceased to be published on the  Relevant Screen Page as a result of such benchmark ceasing to be  calculated or administered when any Rate of Interest (or the relevant  component part thereof) remains to be determined by such Reference  Rate (a Benchmark Event), then the following provisions shall apply:  (x) the Issuer shall use reasonable endeavours to appoint, as soon  as reasonably practicable, an Independent Adviser to determine  (acting in good faith and in a commercially reasonable  manner), no later than 5 Business Days prior to the relevant  Interest Determination Date relating to the next succeeding  Interest Accrual Period (the IA Determination Cut-off Date),  a Successor Rate (as defined below) or, alternatively, if there  is no Successor Rate, an Alternative Reference Rate (as defined  below) for purposes of determining the Rate of Interest (or the  relevant component part thereof) applicable to the Floating  Rate Notes. In making such determination, an Independent  Adviser appointed pursuant to this Condition shall act in good  faith and in a commercially reasonable manner. In the absence  of bad faith or fraud, the Independent Adviser shall have no  liability whatsoever to the Issuer, the Guarantor, the Fiscal  Agent, the Paying Agents, the Noteholders or the  Couponholders for any determination made by it pursuant to  this Condition;  (y) if the Issuer is unable to appoint an Independent Adviser, or the  Independent Adviser appointed by it fails to determine a  Successor Rate or an Alternative Reference Rate prior to the  IA Determination Cut-off Date, the Issuer (acting in good faith  and in a commercially reasonable manner) may determine a  Successor Rate or, if there is no Successor Rate, an Alternative  Reference Rate;  (z) if a Successor Rate or, failing which, an Alternative Reference  Rate (as applicable) is determined in accordance with the  preceding provisions, such Successor Rate or, failing which, an  Alternative Reference Rate (as applicable) shall be the  Reference Rate for each of the future Interest Accrual Periods  (subject to the subsequent operation of, and to adjustment as  provided in, this Condition 5(b)(iii)(C) (Benchmark  Replacement)); provided, however, that if sub-paragraph (y)  applies and the Issuer is unable to or does not determine a  Successor Rate or an Alternative Reference Rate prior to the  relevant Interest Determination Date, the Rate of Interest  applicable to the next succeeding Interest Accrual Period shall  be equal to the Rate of Interest last determined in relation to the  

 

61    Floating Rate Notes in respect of the preceding Interest Accrual  Period (or alternatively, if there has not been a first Interest  Payment Date, the rate of interest shall be the Initial Interest  Rate) (subject, where applicable, to substituting the Margin  that applied to such preceding Interest Accrual Period for the  Margin that is to be applied to the relevant Interest Accrual  Period. Where a different Margin or Maximum or Minimum  Rate of Interest is to be applied to the relevant Interest Period  from that which applied to the last preceding Interest Period,  the Margin or Maximum or Minimum Rate of Interest relating  to the relevant Interest Period shall be substituted in place of  the Margin or Maximum or Minimum Rate of Interest relating  to that last preceding Interest Period); for the avoidance of  doubt, the proviso in this sub-paragraph (z) shall apply to the  relevant Interest Accrual Period only and any subsequent  Interest Accrual Periods are subject to the subsequent operation  of, and to adjustment as provided in, this Condition 5(b)(iii)(C)  (Benchmark Replacement));  (aa) if the Independent Adviser or the Issuer determines a Successor  Rate or, failing which, an Alternative Reference Rate (as  applicable) in accordance with the above provisions, the  Independent Adviser or the Issuer (as applicable), may also  specify changes to these Conditions, including but not limited  to the Day Count Fraction, Relevant Screen Page, Business  Day Convention, Business Days, Interest Determination Date,  Reset Determination Date, Reset Determination Time and/or  the definition of Reference Rate applicable to the Floating Rate  Notes, and the method for determining the fallback rate in  relation to the Floating Rate Notes, in order to follow market  practice in relation to the Successor Rate or the Alternative  Reference Rate (as applicable). If the Independent Adviser (in  consultation with the Issuer) or the Issuer (as applicable),  determines that an Adjustment Spread is required to be applied  to the Successor Rate or the Alternative Reference Rate (as  applicable) and determines the quantum of, or a formula or  methodology for determining, such Adjustment Spread, then  such Adjustment Spread shall be applied to the Successor Rate  or the Alternative Reference Rate (as applicable). If the  Independent Adviser or the Issuer (as applicable) is unable to  determine the quantum of, or a formula or methodology for  determining, such Adjustment Spread, then such Successor  Rate or Alternative Reference Rate (as applicable) will apply  without an Adjustment Spread. For the avoidance of doubt, the  Note Trustee and the Issuing and Paying Agent shall, at the  expense of the Issuer, concur with the Issuer in effecting such  consequential amendments to the Trust Deed, the Agency  Agreement and these Conditions as may be required in order to  give effect to this Condition 5(b)(iii)(C) (Benchmark  Replacement) (the Benchmark Amendments). Noteholder  consent shall not be required in connection with effecting the  Successor Rate or Alternative Reference Rate (as applicable)  or the Benchmark Amendments, including for the execution of  any documents or other steps by the Note Trustee or the Issuing  and Paying Agent in connection therewith (if required)  

 

62    regardless of whether or not the effecting of the Successor Rate  or Alternative Reference Rate (as applicable) or the  Benchmark Amendments constitutes one or more of the items  specified in Condition 13(a) (Meetings of Noteholders).  (bb) Notwithstanding any other provision of this Condition  5(b)(iii)(C) (Benchmark Replacement), neither the Note  Trustee nor the Issuing and Payment Agent shall be obliged to  agree to any amendments (including any Benchmark  Amendments) pursuant to this Condition 5(b)(iii)(C)  (Benchmark Replacement) which, in the sole opinion of the  Note Trustee or the Issuing and Paying Agent (as applicable)  would have the effect of (i) exposing the Note Trustee or the  Issuing and Payment Agent (as applicable) to any liability  against which it has not been indemnified and/or secured  and/or prefunded to its satisfaction or (ii) increasing the  obligations or duties, or decreasing the rights or protections, of  the Note Trustee or the Issuing and Paying Agent (as  applicable) in the Trust Deed, the Agency Agreement and/or  these Conditions; and  (cc) the Issuer shall promptly, following the determination of any  Successor Rate or Alternative Reference Rate (as applicable),  give notice thereof to the Note Trustee, the Issuing and Paying  Agent and the Noteholders, which shall specify the effective  date(s) for such Successor Rate or Alternative Reference Rate  (as applicable) and any consequential changes made to these  Conditions.  (dd) No later than notifying the Note Trustee and the Issuing and  Paying Agent of the same, the Issuer shall deliver to each of  the Note Trustee and the Issuing and Paying Agent a certificate  (on which each of the Note Trustee and the Issuing and Paying  Agent shall be entitled to rely without further enquiry or  liability) signed by two authorised signatories of the Issuer.  I. confirming (i) that a Benchmark Event has occurred,  (ii) the Successor Rate or, as applicable, the Alternative  Reference Rate and, (iii) where applicable, any  Adjustment Spread and/or the specific terms of any  Benchmark Amendments, in each case as determined  in accordance with the provisions of this Condition  5(b)(iii)(C) (Benchmark Replacement);   II. certifying that the Benchmark Amendments (i) are  necessary to ensure that proper operation of such  Successor Rate or Alternative Reference Rate and/or  Adjustment Spread and (ii) in each case, have been  drafted solely to such effect; and  III. certifying that (i) the Issuer has duly consulted with an  Independent Adviser with respect to each of the  matters above or, if that is not the case (ii) explaining,  in reasonable detail, why the Issuer has not done so.  

 

63    For the purposes of this Condition 5(b)(iii)(C) (Benchmark  Replacement):  Adjustment Spread means a spread (which may be positive or  negative) or formula or methodology for calculating a spread, which  the Independent Adviser (in consultation with the Issuer) or the Issuer  acting reasonably (as applicable), determines is required to be applied  to the Successor Rate or the Alternative Reference Rate (as  applicable) in order to reduce or eliminate, to the extent reasonably  practicable in the circumstances, any economic prejudice or benefit  (as applicable) to holders of Floating Rate Notes as a result of the  replacement of the Reference Rate with the Successor Rate or the  Alternative Reference Rate (as applicable) and is the spread, formula  or methodology which:  (i) in the case of a Successor Rate, is formally recommended in  relation to the replacement of the Reference Rate with the  Successor Rate by any Relevant Nominating Body; or  (ii) in the case of a Successor Rate for which no such  recommendation has been made or in the case of an Alternative  Reference Rate, the Independent Adviser (in consultation with  the Issuer) or the Issuer (as applicable) determines is  recognised or acknowledged as being in customary market  usage in international debt capital markets transactions which  reference the Reference Rate, where such rate has been  replaced by the Successor Rate or the Alternative Reference  Rate (as applicable); or  (iii) if no such customary market usage is recognised or  acknowledged, the Independent Adviser (in consultation with  the Issuer) or the Issuer in its discretion (as applicable),  determines (acting in good faith and in a commercially  reasonable manner) to be appropriate.  Alternative Reference Rate means the rate that the Independent  Adviser or the Issuer (as applicable) determines has replaced the  relevant Reference Rate in customary market usage in the international  debt capital markets for the purposes of determining rates of interest in  respect of bonds denominated in the Specified Currency and of a  comparable duration to the relevant Interest Accrual Period, or, if the  Independent Adviser or the Issuer (as applicable) determines that there  is no such rate, such other rate as the Independent Adviser or the Issuer  (as applicable) determines in its discretion (acting in good faith and in  a commercially reasonable manner) is most comparable to the relevant  Reference Rate.  Independent Adviser means an independent financial institution of  international repute or other independent financial adviser experienced  in the international debt capital markets, in each case appointed by the  Issuer at its own expense and the identity of which is approved by the  Note Trustee.  Relevant Nominating Body means, in respect of a Reference Rate:  

 

64    (i) the central bank for the currency to which the Reference Rate  relates, or any central bank or other supervisory authority  which is responsible for supervising the administrator of the  Reference Rate; or  (ii) any working group or committee sponsored by, chaired or co-  chaired by or constituted at the request of (A) the central bank  for the currency to which the Reference Rate relates, (B) any  central bank or other supervisory authority which is  responsible for supervising the administrator of the Reference  Rate, (C) a group of the aforementioned central banks or other  supervisory authorities.  Successor Rate means the rate that the Independent Adviser or the  Issuer (as applicable), each acting in good faith and in a commercially  reasonable manner, determines is a successor to or replacement of the  Reference Rate which is formally recommended by any Relevant  Nominating Body.  (c) Zero Coupon Notes: Where a Note the Interest Basis of which is specified to be zero  coupon is repayable prior to the Maturity Date and is not paid when due, the amount  due and payable prior to the Maturity Date shall be the Early Redemption Amount of  such Note. As from the Maturity Date, the Rate of Interest for any overdue principal of  such a Note shall be a rate per annum (expressed as a percentage) equal to the  Amortisation Yield (as described in Condition 6(b)(i) (Early Redemption).  (d) Accrual of Interest: Interest shall cease to accrue on each Note on the due date for  redemption unless, upon due presentation, payment is improperly withheld or refused,  in which event interest shall continue to accrue (both before and after judgment) at the  Rate of Interest in the manner provided in this Condition 5 (Interest and other  Calculations) to the Relevant Date (as defined in Condition 10 (Taxation)).  (e) Margin, Maximum/Minimum Rates of Interest, Redemption Amounts and  Rounding:  (i) If any Margin is specified in the Final Terms (either (x) generally, or (y) in  relation to one or more Interest Accrual Periods), an adjustment shall be made  to all Rates of Interest, in the case of (x), or the Rates of Interest for the specified  Interest Accrual Periods, in the case of (y), calculated in accordance with  Condition 5(b) (Interest on Floating Rate Notes) above by adding (if a positive  number) or subtracting the absolute value (if a negative number) of such  Margin, subject always to the next paragraph.  (ii) If any Maximum or Minimum Rate of Interest or Redemption Amount is  specified in the Final Terms, then any Rate of Interest or Redemption Amount  shall be subject to such maximum or minimum, as the case may be.  (iii) For the purposes of any calculations required pursuant to these Conditions  (unless otherwise specified), (x) all percentages resulting from such  calculations shall be rounded, if necessary, to the nearest one hundred- thousandth of a percentage point (with halves being rounded up), (y) all figures  shall be rounded to seven significant figures (with halves being rounded up)  and (z) all currency amounts that fall due and payable shall be rounded to the  nearest unit of such currency (with halves being rounded up), save in the case  of yen, which shall be rounded down to the nearest yen. For these purposes unit  

 

65    means the lowest amount of such currency that is available as legal tender in  the countries of such currency.  (f) Calculations: The amount of interest payable per Calculation Amount in respect of any  Note for any Interest Accrual Period shall be equal to the product of the Rate of Interest,  the Calculation Amount specified in the Final Terms, and the Day Count Fraction for  such Interest Accrual Period, unless an Interest Amount (or a formula for its  calculation) is applicable to such Interest Accrual Period, in which case the amount of  interest payable per Calculation Amount in respect of such Note for such Interest  Accrual Period shall equal such Interest Amount (or be calculated in accordance with  such formula). Where any Interest Period comprises two or more Interest Accrual  Periods, the amount of interest payable per Calculation Amount in respect of such  Interest Period shall be the sum of the Interest Amounts payable in respect of each of  those Interest Accrual Periods. In respect of any other period for which interest is  required to be calculated, the provisions above shall apply save that the Day Count  Fraction shall be for the period for which interest is required to be calculated.  (g) Determination and Publication of Rates of Interest, Interest Amounts, Final  Redemption Amounts, Early Redemption Amounts and Optional Redemption  Amounts: The Calculation Agent shall, as soon as practicable on each Interest  Determination Date, or such other time on such date as the Calculation Agent may be  required to calculate any rate or amount, obtain any quotation or make any  determination or calculation, determine such rate and calculate the Interest Amounts in  respect of each denomination of the Notes for the relevant Interest Accrual Period,  Interest Period or Interest Payment Date calculate the Final Redemption Amount, Early  Redemption Amount or Optional Redemption Amount, obtain such quotation and/or  make such determination or calculation, as the case may be, and cause the Rate of  Interest and the Interest Amounts for each Interest Accrual Period, Interest Period or  Interest Payment Date and, if required, the relevant Interest Payment Date and, if  required to be calculated, the Final Redemption Amount, Early Redemption  Amount or Optional Redemption Amount to be notified to the Note Trustee, the  Relevant Issuer, each of the Paying Agents, the Noteholders, any other Calculation  Agent appointed in respect of the Notes that is to make a further calculation upon receipt  of such information and, if the Notes are listed on a stock exchange and the rules of  such exchange or other relevant authority so require, such exchange or other relevant  authority as soon as possible after their determination but in no event later than (i) the  commencement of the relevant Interest Period, if determined prior to such time, in the  case of notification to such exchange of a Rate of Interest and Interest Amount, or (ii)  in all other cases, the fourth Business Day after such determination. Where any Interest  Payment Date or Interest Period Date is subject to adjustment pursuant to Condition  5(b)(ii) (Interest on Floating Rate Notes), the Interest Amounts and the Interest  Payment Date so published may subsequently be amended (or appropriate alternative  arrangements made with the consent of the Note Trustee by way of adjustment) without  notice in the event of an extension or shortening of the Interest Period. If the Notes  become due and payable under Condition 12 (Events of Default), the accrued interest  and the Rate of Interest payable in respect of the Notes shall nevertheless continue to  be calculated as previously in accordance with this Condition but no publication of the  Rate of Interest or the Interest Amount so calculated need be made unless the Note  Trustee otherwise requires. The determination of any rate or amount, the obtaining of  each quotation and the making of each determination or calculation by the Calculation  Agent(s) shall (in the absence of manifest error) be final and binding upon all parties.  (h) Linear Interpolation: Where “Linear Interpolation” is specified as applicable in  respect of an Interest Period in the applicable Final Terms, the Rate of Interest for such  Interest Period shall be calculated by the Agent by straight line linear interpolation by  

 

66    reference to two rates based on the relevant Reference Rate (where Screen Rate  Determination is specified as applicable in the applicable Final Terms) or the relevant  Floating Rate Option (where ISDA Determination is specified as applicable in the  applicable Final Terms), one of which shall be determined as if the Designated Maturity  were the period of time for which rates are available next shorter than the length of the  relevant Interest Period and the other of which shall be determined as if the Designated  Maturity were the period of time for which rates are available next longer than the  length of the relevant Interest Period provided however that if there is no rate available  for a period of time next shorter or, as the case may be, next longer, then the Agent  shall determine such rate at such time and by reference to such sources as it determines  appropriate.  (i) Determination or Calculation by Note Trustee: If the Calculation Agent does not at  any time for any reason determine or calculate the Rate of Interest for an Interest  Accrual Period or any Interest Amount, Final Redemption Amount, Early Redemption  Amount or Optional Redemption Amount, or take any action that it is required to do  pursuant to these Conditions, the Calculation Agent shall forthwith notify the Relevant  Issuer, the Note Trustee and the Issuing and Paying Agent and the Note Trustee  (whether or not it receives such notice) shall do so (or shall appoint an agent on its  behalf to do so) and such determination or calculation shall be deemed to have been  made by the Calculation Agent. In doing so, the Note Trustee shall apply the foregoing  provisions of this Condition, with any necessary consequential amendments, to the  extent that, in its opinion, it can do so, and, in all other respects it shall do so in such  manner as it shall deem fair and reasonable in all the circumstances.  (j) Definitions: In these Conditions, unless the context otherwise requires, the following  defined terms shall have the meanings set out below:  Business Day means:  (i) in the case of a currency other than euro, a day (other than a Saturday or  Sunday) on which commercial banks and foreign exchange markets settle  payments in the principal financial centre for such currency and in each (if any)  Business Centre; and/or  (ii) in the case of euro, a day on which the TARGET System is operating (a  TARGET Business Day) and a day (other than a Saturday or a Sunday) on  which commercial banks and foreign exchange markets settle payments in each  (if any) Business Centre.  Day Count Fraction means, in respect of the calculation of an amount of interest on  any Note for any period of time (from and including the first day of such period to but  excluding the last) (whether or not constituting an Interest Period or an Interest Accrual  Period, the Calculation Period):  (i) if Actual/Actual or Actual/Actual (ISDA) is specified in the Final Terms, the  actual number of days in the Calculation Period divided by 365 (or, if any  portion of that Calculation Period falls in a leap year, the sum of (A) the actual  number of days in that portion of the Calculation Period falling in a leap year  divided by 366 and (B) the actual number of days in that portion of the  Calculation Period falling in a non-leap year divided by 365)  (ii) if Actual/365 (Fixed) is specified in the Final Terms, the actual number of days  in the Calculation Period divided by 365  

 

67    (iii) if Actual/365 (Sterling) is specified in the Final Terms, the actual number of  days in the Calculation Period divided by 365 or, in the case of an Interest  Period Date falling in a leap year, 366  (iv) if Actual/360 is specified in the Final Terms, the actual number of days in the  Calculation Period divided by 360  (v) if 30/360, 360/360 or Bond Basis is specified in the Final Terms, the number  of days in the Calculation Period divided by 360, calculated on a formula basis  as follows:  Day Count Fraction =  [360x(Y2−Y1)]+[30x(M2−M1)+(D2−D1)] 360   where:  Y1 is the year, expressed as a number, in which the first day of the Calculation  Period falls;  Y2 is the year, expressed as a number, in which the day immediately following  the last day included in the Calculation Period falls;  M1 is the calendar month, expressed as a number, in which the first day of the  Calculation Period falls;  M2 is the calendar month, expressed as a number, in which the day  immediately following the last day included in the Calculation Period falls;  D1 is the first calendar day, expressed as a number, of the Calculation Period,  unless such number would be 31, in which case D1 will be 30; and  D2 is the calendar day, expressed as a number, immediately following the last  day included in the Calculation Period, unless such number would be 31 and  D1 is greater than 29, in which case D2 will be 30  (vi) if 30E/360 or Eurobond Basis is specified in the Final Terms, the number of  days in the Calculation Period divided by 360, calculated on a formula basis as  follows:  Day Count Fraction =  [360x(Y2−Y1)]+[30x(M2−M1)+(D2−D1)] 360   where:  Y1 is the year, expressed as a number, in which the first day of the Calculation  Period falls;  Y2 is the year, expressed as a number, in which the day immediately following  the last day included in the Calculation Period falls;  M1 is the calendar month, expressed as a number, in which the first day of the  Calculation Period falls;  M2 is the calendar month, expressed as a number, in which the day immediately  following the last day included in the Calculation Period falls;  D1 is the first calendar day, expressed as a number, of the Calculation Period,  unless such number would be 31, in which case D1 will be 30; and  

 

68    D2 is the calendar day, expressed as a number, immediately following the last  day included in the Calculation Period, unless such number would be 31, in  which case D2 will be 30  (vii) if 30E/360 (ISDA) is specified in the Final Terms, the number of days in  the Calculation Period divided by 360, calculated on a formula basis as follows:  Day Count Fraction =  [360x(Y2−Y1)]+[30x(M2−M1)+(D2−D1)] 360   where:  Y1 is the year, expressed as a number, in which the first day of the Calculation  Period falls;  Y2 is the year, expressed as a number, in which the day immediately following  the last day included in the Calculation Period falls;  M1 is the calendar month, expressed as a number, in which the first day of the  Calculation Period falls;  M2 is the calendar month, expressed as a number, in which the day immediately  following the last day included in the Calculation Period falls;  D1 is the first calendar day, expressed as a number, of the Calculation Period,  unless (i) that day is the last day of February or (ii) such number would be 31,  in which case D2 will be 30; and  D2 is the calendar day, expressed as a number, immediately following the last  day included in the Calculation Period, unless (i) that day is the last day of  February but not the Maturity Date or (ii) such number would be 31, in which  case D2 will be 30  (viii) if Actual/Actual-ICMA is specified in the Final Terms,  (a) if the Calculation Period is equal to or shorter than the Determination  Period during which it falls, the number of days in the Calculation  Period divided by the product of (x) the number of days in such  Determination Period and (y) the number of Determination Periods  normally ending in any year; and  (b) if the Calculation Period is longer than one Determination Period, the  sum of:  (x) the number of days in such Calculation Period falling in the  Determination Period in which it begins divided by the product  of (1) the number of days in such Determination Period and (2)  the number of Determination Periods normally ending in any  year; and  (y) the number of days in such Calculation Period falling in the  next Determination Period divided by the product of (1) the  number of days in such Determination Period and (2) the  number of Determination Periods normally ending in any year  where:  

 

69    Determination Period means the period from and including a  Determination Date in any year to but excluding the next  Determination Date and  Determination Date means the date(s) specified as such in the Final  Terms or, if none is so specified, the Interest Payment Date(s)  Designated Maturity means, in relation to Screen Rate Determination, the period of  time designated in the Reference Rate.  Euro-zone means the region comprised of member states of the European Union that  adopt the single currency in accordance with the Treaty establishing the European  Community, as amended.  Interest Accrual Period means the period beginning on (and including) the Interest  Commencement Date and ending on (but excluding) the first Interest Period Date and  each successive period beginning on (and including) an Interest Period Date and ending  on (but excluding) the next succeeding Interest Period Date.  Interest Amount means:  (i) in respect of an Interest Accrual Period, the amount of interest payable per  Calculation Amount for that Interest Accrual Period and which, in the case of  Fixed Rate Notes, and unless otherwise specified in the Final Terms, shall mean  the Fixed Coupon Amount or Broken Amount specified in the Final Terms as  being payable on the Interest Payment Date ending the Interest Period of which  such Interest Accrual Period forms part; and  (ii) in respect of any other period, the amount of interest payable per Calculation  Amount for that period.  Interest Commencement Date means the Issue Date or such other date as may be  specified in the Final Terms.  Interest Determination Date means, with respect to a Rate of Interest and Interest  Accrual Period, the date specified as such in the Final Terms or, if none is so specified,  (i) the first day of such Interest Accrual Period if the Specified Currency is Sterling or  (ii) the day falling two Business Days in London for the Specified Currency prior to the  first day of such Interest Accrual Period if the Specified Currency is neither Sterling  nor euro or (iii) the day falling two TARGET Business Days prior to the first day of  such Interest Accrual Period if the Specified Currency is euro.  Interest Period means the period beginning on and including the Interest  Commencement Date and ending on but excluding the first Interest Payment Date and  each successive period beginning on and including an Interest Payment Date and ending  on but excluding the next succeeding Interest Payment Date.  Interest Period Date means each Interest Payment Date unless otherwise specified in  the Final Terms.  ISDA Definitions means the 2006 ISDA Definitions, as published by the International  Swaps and Derivatives Association, Inc.  Rate of Interest means the rate of interest payable from time to time in respect of this  Note and that is either specified or calculated in accordance with the provisions in the  Final Terms.  

 

70    Reference Banks means, in the case of a determination of LIBOR, the principal  London office of four major banks in the London inter-bank market and, in the case of  a determination of EURIBOR, the principal Euro-zone office of four major banks in  the Euro-zone inter-bank market, in each case selected by the Calculation Agent or as  specified in the Final Terms.   Reference Rate means the rate specified as such in the Final Terms (being either  LIBOR or EURIBOR or such Alternative Reference Rate or Successor Rate that is  applicable in accordance with Condition 5(b)(iii)(C) (Benchmark Replacement)).  Relevant Screen Page means such page, section, caption, column or other part of a  particular information service as may be specified in the Final Terms.  Specified Currency means the currency specified as such in the Final Terms or, if none  is specified, the currency in which the Notes are denominated.  TARGET System means the Trans-European Automated Real-Time Gross Settlement  Express Transfer (known as TARGET2) System or any successor thereto.  (k) Calculation Agent: The Relevant Issuer shall procure that there shall at all times be  one or more Calculation Agents if provision is made for them in the Final Terms and  for so long as any Note is outstanding (as defined in the Trust Deed). Where more than  one Calculation Agent is appointed in respect of the Notes, references in these  Conditions to the Calculation Agent shall be construed as each Calculation Agent  performing its respective duties under the Conditions. If the Calculation Agent is unable  or unwilling to act as such or if the Calculation Agent fails duly to establish the Rate of  Interest for an Interest Accrual Period or to calculate any Interest Amount, Final  Redemption Amount, Early Redemption Amount or Optional Redemption Amount, as  the case may be, or to comply with any other requirement, the Relevant Issuer shall  (with the prior approval of the Note Trustee) appoint a leading bank or financial  institution engaged in the interbank market (or, if appropriate, money, swap or over- the-counter index options market) that is most closely connected with the calculation  or determination to be made by the Calculation Agent (acting through its principal  London office or any other office actively involved in such market) to act as such in its  place. The Calculation Agent may not resign its duties without a successor having been  appointed as aforesaid.  (l) Adjustment to Rate of Interest: If, in respect of a Tranche of Notes, Ratings  Downgrade Rate Adjustment is specified in the relevant Final Terms as being  applicable, the Rate of Interest specified in the Final Terms (the Initial Rate of  Interest) and payable on the Notes will be subject to adjustment from time to time in  the event of a Rating Change or Rating Changes, within the period from and including  the Issue Date of such Tranche of Notes to and including the date falling 18 months  from such Issue Date (the Rating Change Period, with the final date of such Rating  Change Period being the Rating Change Period End Date), which adjustment shall  be determined as follows.  If, following a Rating Change within the Rating Change Period:  (i) the lowest Rating then assigned to the Notes is A- or A3 or higher, then (unless  there is a subsequent Rating Change within the Rating Change Period) from  and including the first Interest Payment Date following the Rating Change, the  rate of interest payable on the Notes shall be the Initial Rate of Interest;  (ii) the lowest Rating then assigned to the Notes is BBB+ or Baa1, then (unless  there is a subsequent Rating Change within the Rating Change Period) from  

 

71    and including the first Interest Payment Date following the Rating Change, the  rate of interest payable on the Notes shall be the Initial Rate of Interest plus  0.25 per cent. per annum;  (iii) the lowest Rating then assigned to the Notes is BBB or Baa2, then (unless there  is a subsequent Rating Change within the Rating Change Period) from and  including the first Interest Payment Date following the Rating Change, the rate  of interest payable on the Notes shall be the Initial Rate of Interest plus 0.50  per cent. per annum; or  (iv) the lowest Rating then assigned to the Notes is BBB- or Baa3 or lower, or if  such Ratings are withdrawn by both of Moody’s Investor Services Limited and  Standard & Poor's Credit Market Services Europe Limited, then (unless there  is a subsequent Rating Change within the Rating Change Period) from and  including the first Interest Payment Date following the Rating Change the rate  of interest payable on the Notes shall be the Initial Rate of Interest plus 0.75  per cent. per annum  in each case, the Revised Rate of Interest.  Following each Rating Change the Relevant Issuer will notify the Noteholders of the  Revised Rate of Interest following such Rating Change in accordance with the  provisions of Condition 18 (Notices) as soon as reasonably practicable after the  occurrence of the Rating Change. If, in respect of an Interest Period (the Relevant  Interest Period), there is more than one Rating Change, the Revised Rate of Interest  which will apply for the succeeding Interest Period will be the Revised Rate of Interest  resulting from the last Rating Change in the Relevant Interest Period.  There shall be no limit to the number of times that adjustments to the rate of interest  payable on the Notes may be made pursuant to this Condition 5(l) during the Rating  Change Period, provided always that at no time during the term of the Notes will the  rate of interest payable on the Notes be less than the Initial Interest Rate or more than  the Initial Interest Rate plus 0.75 per cent. per annum. For the avoidance of doubt, the  rate of interest payable on the Notes from and including the first Interest Payment Date  following the Rating Change Period End Date to maturity of the Notes shall be  determined in accordance with the Ratings assigned to the Notes as of the Rating  Change Period End Date.  Rating Agency means Standard & Poor’s Credit Market Services Europe Limited or  any of its subsidiaries and their successors or Moody’s Investors Service Limited or  any of its subsidiaries and their successors or any rating agency substituted for any of  them (or any permitted substitute of them) by the Relevant Issuer from time to time  with the prior written approval of the Note Trustee; and  Rating Change means the public announcement by any Rating Agency assigning a  credit rating to the Notes of a change in, or confirmation of, the rating of the Notes or,  as the case may be, of a credit rating being applied.  6. Redemption, Purchase and Options  (a) Final Redemption:  Unless previously redeemed, purchased and cancelled as provided below, each Note shall be  finally redeemed on the Maturity Date specified in the Final Terms at its Final Redemption  Amount (which, unless otherwise provided in the Final Terms, is its nominal amount).  

 

72    (b) Early Redemption:  (i) Zero Coupon Notes:  (A) The Early Redemption Amount payable in respect of any Zero Coupon Note,  the Early Redemption Amount of which is not linked to an index and/or a  formula, upon redemption of such Note pursuant to Condition 6(c) (Redemption  for Taxation Reasons) or upon it becoming due and payable as provided in  Condition 12 (Events of Default) shall be the Amortised Face Amount  (calculated as provided below) of such Note unless otherwise specified in the  Final Terms.  (B) Subject to the provisions of sub-paragraph (C) below, the Amortised Face  Amount of any such Note shall be the scheduled Final Redemption Amount of  such Note on the Maturity Date discounted at a rate per annum (expressed as a  percentage) equal to the Amortisation Yield (which, if none is shown in the  Final Terms, shall be such rate as would produce an Amortised Face Amount  equal to the issue price of the Notes if they were discounted back to their issue  price on the Issue Date) compounded annually.  (C) If the Early Redemption Amount payable in respect of any such Note upon its  redemption pursuant to Condition 6(c) (Redemption for Taxation Reasons) or  upon it becoming due and payable as provided in Condition 12 (Events of  Default) is not paid when due, the Early Redemption Amount due and payable  in respect of such Note shall be the Amortised Face Amount of such Note as  defined in sub-paragraph (B) above, except that such sub-paragraph shall have  effect as though the date on which the Note becomes due and payable were the  Relevant Date. The calculation of the Amortised Face Amount in accordance  with this subparagraph shall continue to be made (both before and after  judgment) until the Relevant Date, unless the Relevant Date falls on or after the  Maturity Date, in which case the amount due and payable shall be the scheduled  Final Redemption Amount of such Note on the Maturity Date together with any  interest that may accrue in accordance with Condition 5(c) (Zero Coupon  Notes).  Where such calculation is to be made for a period of less than one year, it shall  be made on the basis of the Day Count Fraction shown in the Final Terms.  (ii) Other Notes: The Early Redemption Amount payable in respect of any Note (other than  Notes described in (i) above), upon redemption of such Note pursuant to Condition 6(c)  (Redemption for Taxation Reasons) or upon it becoming due and payable as provided  in Condition 12 (Events of Default), shall be the Final Redemption Amount unless  otherwise specified in the Final Terms.  (c) Redemption for Taxation Reasons: The Notes may be redeemed at the option of the Relevant  Issuer in whole, but not in part, on any Interest Payment Date (if this Note is either a Floating  Rate Note or an Indexed Note) or at any time (if this Note is neither a Floating Rate Note nor  an Indexed Note), on giving not less than 30 nor more than 60 days’ notice to the Note Trustee  and the Noteholders in accordance with Condition 18 (Notices) (which notice shall be  irrevocable) at their Early Redemption Amount (as described in Condition 6(b) (Early  Redemption) above) (together with interest accrued to the date fixed for redemption), if (i) the  Relevant Issuer satisfies the Note Trustee immediately before the giving of such notice that it  has or will become obliged to pay additional amounts as described under Condition 10  (Taxation) as a result of any change in, or amendment to, the laws or regulations of the United  Kingdom or any political subdivision or any authority thereof or therein having power to tax,  or any change in the application or official interpretation of such laws or regulations, which  

 

73    change or amendment becomes effective on or after the date on which agreement is reached to  issue the first Tranche of the Notes, and (ii) such obligation cannot be avoided by the Relevant  Issuer taking reasonable measures available to it, provided that no such notice of redemption  shall be given earlier than 90 days prior to the earliest date on which the Relevant Issuer would  be obliged to pay such additional amounts were a payment in respect of the Notes then due.  Prior to the publication of any notice of redemption pursuant to this Condition 6(c) (Redemption  for Taxation Reasons), the Relevant Issuer shall deliver to the Note Trustee a certificate signed  by two directors of the Relevant Issuer stating that the obligation referred to in (i) above cannot  be avoided by the Relevant Issuer taking reasonable measures available to it and the Note  Trustee shall be entitled to accept such certificate as sufficient evidence of the satisfaction of  the condition precedent set out in (ii) above, in which event it shall be conclusive and binding  on Noteholders and Couponholders.  All Notes in respect of which any such notice is given shall be redeemed on the date specified  in such notice in accordance with this Condition.  (d) Redemption for Indexation Reasons: Upon the occurrence of any Index Event (as defined  below), the Relevant Issuer may, upon giving not less than 30 nor more than 60 days’ notice to  the Note Trustee and the holders of the Indexed Notes in accordance with Condition 18  (Notices), redeem all (but not some only) of the Indexed Notes of all Tranches on any Interest  Payment Date at the Principal Amount Outstanding (adjusted in accordance with Condition 7(a)  (Application of the Index Ratio)) plus accrued but unpaid interest. No single Tranche of Indexed  Notes may be redeemed in these circumstances unless all the other Tranches of Indexed Notes  linked to the same underlying Index are also redeemed at the same time. Before giving any such  notice, the Relevant Issuer shall provide to the Note Trustee a certificate signed by two directors  of the Relevant Issuer (a) stating that the Relevant Issuer is entitled to effect such redemption  and setting forth a statement of facts showing that the conditions precedent to the right of the  Relevant Issuer so to redeem have occurred and (b) confirming that the Relevant Issuer will  have sufficient funds on such Interest Payment Date to effect such redemption. The Note  Trustee shall be entitled to rely on such certificate without liability to any person.  All Notes in respect of which any such notice is given shall be redeemed on the date specified  in such notice in accordance with this Condition.  Index Event means (i) if the Index Figure for three consecutive months falls to be determined  on the basis of an Index Figure previously published as provided in Condition 7(b)(ii) (Delay  in publication of Index) and the Note Trustee has been notified by the Issuing and Paying Agent  or Agent Bank that publication of the Index has ceased or (ii) notice is published by Her  Majesty’s Treasury, or on its behalf, following a change in relation to the Index, offering a right  of redemption to the holders of the Reference Gilt, and (in either case) no amendment or  substitution of the Index has been advised by the Indexation Adviser to the Relevant Issuer and  such circumstances are continuing.  Principal Amount Outstanding means, in respect of a Note on any date:  (a) the principal amount of that Note upon issue, minus;  (b) the aggregate amount of principal repayments or prepayments made in respect of that  Note since the Issue Date.  (e) Redemption at the Option of the Relevant Issuer: If Call Option is specified in the Final  Terms, the Relevant Issuer may, on giving not less than 15 nor more than 30 days’ irrevocable  notice to the Note Trustee and the Noteholders redeem all or, if so provided, some of the Notes  on any Optional Redemption Date. Any such redemption of Notes shall be at their Optional  Redemption Amount together with interest accrued up to (and including) the date fixed for  redemption. Any such redemption or exercise must relate to Notes of a nominal amount at least  

 

74    equal to the Minimum Redemption Amount to be redeemed specified in the Final Terms and  no greater than the Maximum Redemption Amount to be redeemed specified in the Final Terms.  If Make-Whole Redemption is specified in the Final Terms, the Relevant Issuer may, on giving  not less than 15 nor more than 30 days' irrevocable notice to the Noteholders (or such other  notice period as may be specified in the Final Terms), redeem all or, if so provided, some of the  Notes at any time or from time to time (i) where no particular period during which Make-Whole  Redemption is applicable is specified, prior to their Maturity Date, or (ii) where Make-Whole  Redemption is specified as only being applicable for a certain period, during such period, in  each case on the date for redemption specified in such notice (the Make-Whole Redemption  Date) at the Make-Whole Redemption Amount.  In the case of Notes other than Index Linked Interest Notes or Index Linked Redemption Notes  where CPI is specified as the Index in the relevant Final Terms, the Make-Whole Redemption  Amount will be calculated by the Financial Adviser and will be the greater of:  (i) 100 per cent. of the principal amount of the Notes so redeemed (where applicable,  adjusted for indexation in accordance with Condition 7 (Indexation)); and  (ii) the sum of the then present values of the remaining scheduled payments of principal  and interest on such Notes (not including any interest accrued on the Notes to, but  excluding, the relevant Make-Whole Redemption Date) discounted to the relevant  Make-Whole Redemption Date on an annual basis at the Make-Whole Redemption  Rate plus the Make-Whole Redemption Margin, if any, specified in the applicable Final  Terms, plus, in each case, any interest accrued on the Notes to, but excluding, the Make- Whole Redemption Date.  In the case of Index Linked Interest Notes or Index Linked Redemption Notes where CPI is  specified as the Index in the relevant Final Terms:  (i) unless the Financial Adviser advises the Relevant Issuer that an appropriate CPI Gilt is  outstanding which would be utilised, at the time of selection and in accordance with  customary financial practice at such time, in pricing new issues of corporate debt  securities with a similar remaining weighted average life to the Notes, the Make-Whole  Redemption Amount will be calculated by the Financial Adviser and will be the greater  of:  a. 100 per cent. of the principal amount of the Notes so redeemed (adjusted for indexation  in accordance with Condition 7); and  b. the RPI Adjusted Redemption Amount; or  (ii) if the Financial Adviser advises the Relevant Issuer that an appropriate CPI Gilt is  outstanding (the Redemption Reference CPI Gilt) which would be utilised, at the time  of selection and in accordance with customary financial practice at such time, in pricing  new issues of corporate debt securities with a similar remaining weighted average life  to the Notes, the Make-Whole Redemption Amount will be calculated by the Financial  Adviser and will be the greater of:  a. 100 per cent. of the principal amount of the Notes so redeemed (adjusted for indexation  in accordance with Condition 7 (Indexation)) and  b. the sum of the then present values of the remaining scheduled payments of principal  and interest on such Notes (not including any interest accrued on the Notes to, but  excluding, the relevant Make-Whole Redemption Date) discounted to the relevant  Make-Whole Redemption Date on an annual basis at the CPI Make-Whole Redemption  

 

75    Rate plus the Make-Whole Redemption Margin, if any, specified in the applicable Final  Terms, plus, in each case, any interest accrued on the Notes to, but excluding, the Make- Whole Redemption Date.  All Notes in respect of which any such notice is given shall be redeemed on the date specified  in such notice in accordance with this Condition.  In the case of a partial redemption the notice to Noteholders shall also contain the certificate  numbers of the Bearer Notes, or in the case of Registered Notes shall specify the nominal  amount of Registered Notes drawn and the holder(s) of such Registered Notes, to be redeemed,  which shall have been drawn in such place as the Note Trustee may approve and in such manner  as it deems appropriate, subject to compliance with any applicable laws and stock exchange or  other relevant authority requirements.  In the case of a partial redemption of a Tranche of Notes represented by a New Global Note (as  defined in the Trust Deed) pursuant to this Condition, the Notes to be redeemed (the Redeemed  Notes) will be selected in accordance with the rules and procedures of Euroclear and/or  Clearstream, Luxembourg (to be reflected in the records of Euroclear and Clearstream,  Luxembourg as either a pool factor or a reduction in nominal amount, at their discretion), not  more than 30 days prior to the date fixed for redemption.  For the purposes of this Condition 6(e):  CPI Gilt means a sterling obligation of the UK government listed on the Official List of the  Financial Conduct Authority and admitted to trading on the London Stock Exchange which is  linked to the CPI;  CPI Make-Whole Redemption Rate means with respect to the Reference Dealers and the  Make-Whole Redemption Date, the average of the five quotations of the mid-market annual  yield to maturity of the Redemption Reference CPI Gilt at the Quotation Time specified in the  Final Terms on the Determination Date specified in the Final Terms quoted in writing to the  Relevant Issuer and the Trustee by the Reference Dealers;  Financial Adviser means an independent financial institution of international repute or an  independent adviser of recognised standing with appropriate expertise selected by the Relevant  Issuer at its own expense after notification of such selection to the Trustee;  Make-Whole Redemption Rate means with respect to the Reference Dealers and the Make- Whole Redemption Date, the average of the five quotations of the mid-market annual yield to  maturity of the Make-Whole Reference Bond specified in the Final Terms or, if the Make- Whole Reference Bond is no longer outstanding, a similar security in the reasonable judgment  of the Reference Dealers, at the Quotation Time specified in the Final Terms on the  Determination Date specified in the Final Terms quoted in writing to the Relevant Issuer and  the Trustee by the Reference Dealers;  Notional RPI Bond means a bond issued by the Relevant Issuer, the terms of which are the  same as those of the Notes to be redeemed, save only that payments of principal and interest  are adjusted for indexation by reference to RPI (rather than CPI);  Real Yield means a yield, expressed as a percentage, calculated by the Financial Adviser on  the basis set out by the United Kingdom Debt Management Office in the paper “Formulae for  Calculating Gilt Prices from Yields” page 5, Section One: Price/Yield Formulae (Index-Linked  Gilts) (published on 8 June, 1998 and updated on 15 January, 2002 and 16 March, 2005) (as  updated, amended or supplemented from time to time) on a semi-annual compounding basis  (converted to an annualised yield and rounded up (if necessary) to five decimal places). Such  method requires the adoption of an assumed inflation rate which shall be such rate as the  

 

76    Financial Adviser may determine and notify to the Trustee and the Issue and Paying Agent to  be appropriate and, for the avoidance of doubt, the assumed inflation rate shall be a long-term  UK inflation rate for the remaining life of the Notes. If such formula does not reflect generally  accepted market practice at the time of redemption, a yield calculated in accordance with  generally accepted market practice at such time, all as advised to the Relevant Issuer by the  Financial Adviser;  Redemption Reference RPI Gilt means such RPI Gilt as the Financial Adviser determines  would be utilised, at the time of selection and in accordance with customary financial practice  at such time, in pricing new issues of corporate debt securities of comparable maturity and  amortisation profile to the remaining term of the Notes (or, where the Financial Adviser advises  the Relevant Issuer) that, for reasons of illiquidity or otherwise, such stock is not appropriate  for such purpose, such other government stock as the Financial Adviser may recommend as  appropriate for this purpose;  Reference Dealers means those Reference Dealers specified in the Final Terms;  RPI Adjusted Redemption Amount is an amount equal to the sum of:  (i) the product (adjusted for indexation in accordance with Condition 6) of the outstanding  principal amount of the Notes to be redeemed and the price, expressed as a percentage  (rounded to five decimal places, with 0.000005 being rounded upwards), (as reported  in writing to the Relevant Issuer by the Financial Adviser) at which the Real Yield on  the Notes on the Yield Calculation Date is equal to the sum of (x) the Real Yield at  11.00 a.m. (London time) on such date of the Redemption Reference RPI Gilt (or,  where the Financial Adviser determines in good faith and advises to the Relevant Issuer  that, for reasons of illiquidity or otherwise, such stock is not appropriate for such  purpose, such other government stock as advised to the Relevant Issuer by the Financial  Adviser) and (y) 0.1 per cent.; and  (ii) the Wedge Value (which may be positive or negative and, if negative, the absolute  value shall be deducted for the purpose of calculating the RPI Adjusted Redemption  Amount);  RPI Gilt means a sterling obligation of the UK government listed on the Official List of the  Financial Conduct Authority and admitted to trading on the London Stock Exchange which is  linked to the RPI;  Wedge Value means the market value to a market counterparty on the Yield Calculation Date  (based on three (or such lower number as the Relevant Issuer and the Financial Adviser may  agree as appropriate) third party quotes) of a notional swap (where the parties are deemed to  have a bilateral, daily, zero-threshold, no initial amount, ISDA Credit Support Annex) under  which the market counterparty:  (i) receives the remaining cashflows of the Notes; and  (ii) pays the remaining cashflows of the Notional RPI Bond,  and where, in providing such quotes, such third parties are asked to use discount factors  calculated from the zero coupon curve derived from the interest rate used to calculate payments  on GBP cash collateral, provided that, if the Financial Adviser determines and advises the  Relevant Issuer that it is not reasonably practicable to determine the Wedge Value on such basis  (including, without limitation, because it is not reasonably practicable to obtain third party  quotes) the Wedge Value shall be determined by the Financial Adviser and advised to the  Relevant Issuer; and  

 

77    Yield Calculation Date means the date which is the second Business Day prior to the date on  which the notice to redeem is dispatched; and  in the case of Index Linked Interest Notes and/or Index Linked Redemption Notes only, the  then present values of the remaining scheduled payments of principal and interest on such  Notes shall be calculated in accordance with the customary conventions applied to the  calculation of such amounts in the inflation linked debt transactions from time to time.  (f) Pre-Maturity Call Option by the Issuer: If Pre-Maturity Call Option is specified as being  applicable in the Final Terms, the Relevant Issuer may, on giving not less than 15 nor more  than 30 days’ irrevocable notice to the Note Trustee and the Noteholders redeem all (but not  some only) of the outstanding Notes of the relevant Series on the Pre-Maturity Call Option  Date. Any such redemption of Notes shall be at par together with unpaid interest accrued up to  (and including) the Pre-Maturity Call Option Date.  Pre-Maturity Call Option Date means the date that is 3 calendar months prior to the Maturity  Date specified in the Final Terms for the relevant Series of Notes.  All Notes in respect of which any such notice is given shall be redeemed on the date specified  in such notice in accordance with this Condition.  (g) Clean-up Call Option by the Issuer: If Clean-up Call Option is specified as being applicable  in the Final Terms, the Relevant Issuer may, on giving not less than 15 nor more than 30 days’  irrevocable notice to the Note Trustee and the Noteholders redeem all (but not some only) of  the outstanding Notes of the relevant Series, provided that at least 80 per cent. of the initial  aggregate principal amount of the Notes of such Series has been purchased or redeemed by the  Relevant Issuer (except where such redemption was pursuant to Condition 6(e) (Redemption at  the Option of the Relevant Issuer)). Any such redemption of Notes shall be at par together with  unpaid interest accrued up to (and including) the date fixed for redemption.  All Notes in respect of which any such notice is given shall be redeemed on the date specified  in such notice in accordance with this Condition.  (h) Redemption at the Option of Noteholders: If Investor Put is specified in the Final Terms, the  Relevant Issuer shall, at the option of the holder of any such Note, upon the holder of such Note  giving not less than 15 nor more than 30 days’ notice to the Relevant Issuer (or such other notice  period as may be specified in the Final Terms) redeem such Note on the Optional Redemption  Date(s) (specified in the Final Terms) at its Optional Redemption Amount (specified in the  Final Terms) together with interest accrued up to (and including) the date fixed for redemption.  To exercise such option the holder must deposit (in the case of Bearer Notes) such Note  (together with all unmatured Coupons and unexchanged Talons) with any Paying Agent or (in  the case of Registered Notes) the Certificate representing such Note(s) with the Registrar or any  Transfer Agent at its specified office, together with a duly completed option exercise notice  (Exercise Notice) in the form obtainable from any Paying Agent, the Registrar or any Transfer  Agent (as applicable) within the notice period. No Note or Certificate so deposited and option  exercised may be withdrawn (except as provided in the Agency Agreement) without the prior  consent of the Relevant Issuer.  (i) Redemption at the Option of the Noteholders on a Restructuring Event  (i) If Restructuring Put Option is specified in the Final Terms, and:  (a) if, at any time while any of the Notes remains outstanding, a Restructuring  Event (as defined below) occurs and prior to the commencement of or during  the Restructuring Period (as defined below):  

 

78    (A) an independent financial adviser (as described below) shall have  certified in writing to the Note Trustee that such Restructuring Event  will not be or is not, in its opinion, materially prejudicial to the interests  of the Noteholders; or  (B) if there are Rated Securities (as defined below), each Rating Agency  (as defined below) that at such time has assigned a current rating to the  Rated Securities confirms in writing to the Relevant Issuer at its request  (which it shall make as set out below) that it will not be withdrawing  or reducing the then current rating assigned to the Rated Securities by  it from an investment grade rating (BBB-/Baa3, or their respective  equivalents for the time being, or better) to a non-investment grade  rating (BB+/Bal, or their respective equivalents for the time being, or  worse) or, if the Rating Agency shall have already rated the Rated  Securities below investment grade (as described above), the rating will  not be lowered by one full rating category or more, in each case as a  result, in whole or in part, of any event or circumstance comprised in  or arising as a result of the applicable Restructuring Event,  the following provisions of this Condition 6(i) (Redemption at the Option of the  Noteholders on a Restructuring Event) shall cease to have any further effect in  relation to such Restructuring Event.  (b) if, at any time while any of the Notes remains outstanding, a Restructuring  Event occurs and (subject to Condition 6(i)(i)(a) (Redemption at the Option of  the Noteholders on a Restructuring Event):  (A) within the Restructuring Period, either:  (i) if at the time such Restructuring Event occurs there are Rated  Securities, a Rating Downgrade (as defined below) in respect  of such Restructuring Event also occurs; or  (ii) if at such time there are no Rated Securities, a Negative Rating  Event (as defined below) in respect of such Restructuring  Event also occurs; and  (B) an independent financial adviser shall have certified in writing to the  Note Trustee that such Restructuring Event is, in its opinion, materially  prejudicial to the interests of the Noteholders (a Negative  Certification),  then, unless at any time the Relevant Issuer shall have given notice under Conditions 6(e)  (Redemption at the Option of the Relevant Issuer), (f) (Pre-Maturity Call Option by the Issuer)  or (g) (Clean-up Call Option by the Issuer) or the holder shall have given notice under  Condition 6(h) (Redemption at the Option of Noteholders) (if applicable), the holder of each  Note will, upon the giving of a Put Event Notice (as defined below), have the option (the  Restructuring Put Option) to require the Relevant Issuer to redeem or, at the option of the  Relevant Issuer, purchase (or procure the purchase of) that Note on the Put Date (as defined  below), at its Optional Redemption Amount (specified in the Final Terms) together with (or,  where purchased, together with an amount equal to) interest (if any) accrued to (but excluding)  the Put Date.  A Restructuring Event shall be deemed not to be materially prejudicial to the interests of the  Noteholders if, notwithstanding the occurrence of a Rating Downgrade or a Negative Rating  Event, the rating assigned to the Rated Securities by any Rating Agency (as defined below) is  

 

79    subsequently increased to, or, as the case may be, there is assigned to the Notes or other  unsecured and unsubordinated debt of the Relevant Issuer having an initial maturity of five  years or more by any Rating Agency, an investment grade rating (BBB-/Baa3) or their  respective equivalents for the time being) or better prior to any Negative Certification being  issued.  Any Negative Certification shall be conclusive and binding on the Note Trustee, the Relevant  Issuer and the Noteholders. The Relevant Issuer may, at any time, with the approval of the Note  Trustee appoint an independent financial adviser for the purposes of this Condition 6(i)  (Redemption at the Option of the Noteholders on a Restructuring Event). If, within five  Business Days following the occurrence of a Rating Downgrade or a Negative Rating Event, as  the case may be, in respect of a Restructuring Event, the Relevant Issuer shall not have  appointed an independent financial adviser for the purposes of Condition 6(i)(i)(b)(B) and (if  so required by the Note Trustee) the Note Trustee is indemnified and/or prefunded and/or  secured to its satisfaction against the costs of such adviser, the Note Trustee may appoint an  independent financial adviser for such purpose following consultation with the Relevant Issuer.  (ii) Promptly upon the Relevant Issuer becoming aware that a Put Event (as defined below) has  occurred, and in any event not later than 14 days after the occurrence of a Put Event, the  Relevant Issuer shall, and at any time upon the Note Trustee if so requested by the holders of  at least one-quarter in nominal amount of the Notes then outstanding shall, give notice (a Put  Event Notice) to the Noteholders in accordance with Condition 18 (Notices) specifying the  nature of the Put Event and the procedure for exercising the Restructuring Put Option.  (iii) To exercise the Restructuring Put Option, the holder of a Note must comply with the provisions  of Condition 6(h) (Redemption at the Option of Noteholders). The applicable notice period for  the purposes of Condition 6(h) (Redemption at the Option of Noteholders), as applied to a  Restructuring Put Option, shall be the period (the Put Period) of 45 days after that on which a  Put Event Notice is given. Subject to the relevant Noteholder having complied with Condition  6(h) (Redemption at the Option of Noteholders), the Relevant Issuer shall redeem or, at the  option of that Relevant Issuer, purchase (or procure the purchase of) the relevant Note on the  fifteenth day after the date of expiry of the Put Period (the Put Date) unless previously  redeemed or purchased.  (iv) For the purposes of these Conditions:  (a) Distribution Services Area means, in respect of a Relevant Issuer, the area specified  as such in the distribution licence granted to it on 1 October 2001 under section 6(l)(c)  of the Electricity Act 1989 (as amended by section 30 of the Utilities Act 2000), as of  the date of such distribution licence.  (b) A Negative Rating Event shall be deemed to have occurred if (1) a Relevant Issuer  does not, either prior to or not later than 14 days after the date of the relevant  Restructuring Event, seek, and thereupon use all reasonable endeavours to obtain, a  rating of the Notes or any other unsecured and unsubordinated debt of that Relevant  Issuer having an initial maturity of five years or more from a Rating Agency or (2) if it  does so seek and use such endeavours, it is unable, as a result of such Restructuring  Event, to obtain such a rating of at least investment grade (BBB-/Baa3, or their  respective equivalents for the time being).  (c) A Put Event occurs on the date of the last to occur of (1) a Restructuring Event, (2)  either a Rating Downgrade or, as the case may be, a Negative Rating Event and (3) the  relevant Negative Certification.  (d) Rating Agency means Standard & Poor’s Credit Market Services Europe Limited or  any of its subsidiaries and their successors (Standard & Poor’s) or Moody’s Investors  

 

80    Service Limited or any of its subsidiaries and their successors (Moody’s) or any rating  agency substituted for any of them (or any permitted substitute of them) by the Relevant  Issuer from time to time with the prior written approval of the Note Trustee.  (e) A Rating Downgrade shall be deemed to have occurred in respect of a Restructuring  Event if the then current rating assigned to the Rated Securities by any Rating Agency  (whether provided by a Rating Agency at the invitation of the Relevant Issuer or by its  own volition) is withdrawn or reduced from an investment grade rating (BBB-/Baa3),  or their respective equivalents for the time being, or better) to a non-investment grade  rating (BB+/Bal), or their respective equivalents for the time being, or worse) or, if the  Rating Agency shall then have already rated the Rated Securities below investment  grade (as described above), the rating is lowered one full rating category or more.  (f) Rated Securities means the Notes, if at any time and for so long as they have a rating  from a Rating Agency, and otherwise any other unsecured and unsubordinated debt of  a Relevant Issuer having an initial maturity of five years or more which is rated by a  Rating Agency.  (g) Restructuring Event means the occurrence of any one or more of the following events:  (A) (i) the Secretary of State for Business, Innovation and Skills (or any  successor) giving the Relevant Issuer written notice of any revocation of its  Distribution Licence; or  (ii) the Relevant Issuer agreeing in writing with the Secretary of State for  Business, Innovation and Skills (or any successor) to any revocation or  surrender of its Distribution Licence; or  (iii) any legislation (whether primary or subordinate) being enacted which  terminates or revokes the Distribution Licence of the Relevant Issuer;  except, in each such case, in circumstances where a licence or licences on  substantially no less favourable terms is or are granted to the Relevant Issuer  or a wholly-owned subsidiary of the Relevant Issuer where such subsidiary at  the time of such grant either executes in favour of the Note Trustee an  unconditional and irrevocable guarantee in respect of all Notes issued by the  Relevant Issuer in such form as the Note Trustee may approve or becomes the  primary obligor under the Notes issued by the Relevant Issuer in accordance  with Condition 13(c) (Substitution); or  (B) any modification (other than a modification which is of a formal, minor or  technical nature) being made to the terms and conditions upon which a Relevant  Issuer is authorised and empowered under relevant legislation to distribute  electricity in the Distribution Services Area unless two directors of such Issuer  have certified in good faith to the Note Trustee that the modified terms and  conditions are not materially less favourable to the business of that Relevant  Issuer;  (C) any legislation (whether primary or subordinate) is enacted which removes,  qualifies or amends (other than an amendment which is of a formal, minor or  technical nature) the duties of the Secretary of State for Business, Innovation  and Skills (or any successor) and/or the Gas and Electricity Markets Authority  (or any successor) under section 3A of the Electricity Act 1989 (as amended by  the Utilities Act 2000) (as this may be amended from time to time) unless two  directors of such Relevant Issuer have certified in good faith to the Note Trustee  

 

81    that such removal, qualification or amendment does not have a materially  adverse effect on the financial condition of that Relevant Issuer.  (h) Restructuring Period means:  (A) if at the time a Restructuring Event occurs there are Rated Securities, the period  of 90 days starting from and including the day on which that Restructuring  Event occurs; or  (B) if at the time a Restructuring Event occurs there are no Rated Securities, the  period starting from and including the day on which that Restructuring Event  occurs and ending on the day 90 days following the later of (aa) the date (if  any) on which the Relevant Issuer shall seek to obtain a rating as contemplated  by the definition of Negative Rating Event; (bb) the expiry of the 14 days  referred to in the definition of Negative Rating Event and (cc) the date on which  a Negative Certification shall have been given to the Note Trustee in respect of  that Restructuring Event.  (i) A Rating Downgrade or a Negative Rating Event or a non-investment grade rating shall  be deemed not to have occurred as a result or in respect of a Restructuring Event if the  Rating Agency making the relevant reduction in rating or, where applicable, refusal to  assign a rating of at least investment grade as provided in this Condition 6(i)  (Redemption at the Option of the Noteholders on a Restructuring Event), does not  announce or publicly confirm or inform the Relevant Issuer in writing at its request  (which it shall make as set out in the following paragraph) that the reduction or, where  applicable, declining to assign a rating of at least investment grade, was the result, in  whole or in part, of any event or circumstance comprised in or arising as a result of the  applicable Restructuring Event.  The Relevant Issuer undertakes to contact the relevant Rating Agency immediately  following that reduction, or where applicable the refusal to assign a rating of at least  investment grade, to confirm whether that reduction, or refusal to assign a rating of at  least investment grade was the result, in whole or in part, of any event or circumstance  comprised in or arising as a result of the applicable Restructuring Event. The Relevant  Issuer shall notify the Note Trustee immediately upon receipt of any such confirmation  from the relevant Rating Agency.  (j) Purchases: The Relevant Issuer may at any time purchase Notes (provided that all  unmatured Coupons and unexchanged Talons relating thereto are attached thereto or  surrendered therewith) in the open market or otherwise at any price.  (k) Cancellation: All Notes purchased by or on behalf of the Relevant Issuer or its  Subsidiaries may be surrendered for cancellation, in the case of Bearer Notes, by  surrendering each such Note together with all unmatured Coupons and all unexchanged  Talons to the Issuing and Paying Agent and, in the case of Registered Notes, by  surrendering the Certificate representing such Notes to the Registrar and, in each case,  if so surrendered, shall, together with all Notes redeemed by the Relevant Issuer, be  cancelled forthwith (together with all unmatured Coupons and unexchanged Talons  attached thereto or surrendered therewith). Any Notes so surrendered for cancellation  may not be reissued or resold and the obligations of the Relevant Issuer in respect of  any such Notes shall be discharged.  7. Indexation  This Condition 7 (Indexation) is applicable only if the relevant Final Terms specifies that the  Notes are Index Linked Interest Notes and/or Index Linked Redemption Notes.  

 

82    (a) Application of the Index Ratio  Each payment of interest in respect of the Index Linked Interest Notes shall be the amount  provided in, or determined in accordance with, these Conditions, multiplied by the Index Ratio  (or Limited Index Ratio in the case of Limited Indexed Notes) applicable to the month in  which such payment falls to be made and rounded in accordance with Condition 5(e) (Margin,  Maximum/Minimum Rates of Interest, Redemption Amounts and Rounding).   Unless otherwise specified hereon, the Final Redemption Amount, the Early Redemption   Amount and the Optional Redemption Amount in respect of the Index Linked Interest Notes   and/or Index Linked Redemption Notes shall be the nominal amount of the Index Linked   Interest Notes and/or Index Linked Redemption Notes multiplied by the Index Ratio applicable   to the date on which the Final Redemption Amount, Early Redemption Amount or Optional   Redemption Amount (as the case may be) becomes payable, provided that:  (i) if a Minimum Final Redemption Amount, Minimum Early Redemption Amount and/or  Minimum Optional Redemption Amount is specified in the applicable Final Terms and such  amount is greater than the amount of principal in respect of the Notes determined in  accordance with this Condition 7(a) (expressed on a per Calculation Amount basis), the Final  Redemption Amount, Early Redemption Amount and/or Optional Redemption Amount (as  applicable) shall be, respectively, the Minimum Final Redemption Amount, Minimum Early  Redemption Amount and/or Minimum Optional Redemption Amount (as applicable) so  specified in the applicable Final Terms; and/or  (ii) if a Maximum Final Redemption Amount, Maximum Early Redemption Amount and/or  Maximum Optional Redemption Amount is specified in the applicable Final Terms and such  amount is less than the amount of principal in respect of the Notes determined in accordance  with this Condition 7(a) (expressed on a per Calculation Amount basis), the Final  Redemption Amount, Early Redemption Amount and/or Optional Redemption Amount (as  applicable) shall be, respectively, the Maximum Final Redemption Amount, Maximum  Early Redemption Amount or Maximum Optional Redemption Amount (as applicable) so  specified in the applicable Final Terms; and  (iii) the Calculation Agent will calculate the Final Redemption Amount, Early Redemption  Amount and Optional Redemption Amount (as the case may be) as set out in Condition 5(g)  (Determination and Publication of Rates of Interest, Interest Amounts, Final Redemption  Amounts, Early Redemption Amounts and Optional Redemption Amounts).  Each payment of principal in respect of the Index Linked Redemption Notes shall be the  amount provided in, or determined in accordance with, these Conditions, multiplied by the  Index Ratio (or Limited Index Ratio in the case of Limited Indexed Notes) applicable to the  month in which such payment falls to be made and rounded in accordance with Condition 5(e)  (Margin, Maximum/Minimum Rates of Interest, Redemption Amounts and Rounding).  (b) Changes in Circumstances Affecting the Index  (i) Change in base: If at any time and from time to time the Index is changed by the  substitution of a new base therefore, then with effect from the calendar month from and  including that in which such substitution takes effect (1) the definition of “Index” and  “Index Figure” in Condition 8 (Definitions) shall be deemed to refer to the new date or  month in substitution for January 1987 (or, as the case may be, to such other date or  month as may have been substituted therefore); and (2) the new Base Index Figure shall  be the product of the existing Base Index Figure and the Index Figure immediately  following such substitution, divided by the Index Figure immediately prior to such  substitution.  

 

83    (ii) Delay in publication of Index: If the Index Figure relating to any month (the relevant  month) which is required to be taken account for the purposes of the determination of  the Index Figure applicable for any date is not published on or before the fourteenth  business day before the date on which any payment of interest or principal on the Notes  is due (the date for payment), the Index Figure relating to the relevant month shall be  (1) such substitute index figure (if any) as an Indexation Adviser considers to have been  published by the Bank of England or, as the case may be, the United Kingdom Debt  Management Office (or such other designated debt manager of Her Majesty’s Treasury,  from time to time) for the purposes of indexation of payments on the Reference Gilt or,  failing such publication, on any one or more issues of index-linked Treasury Stock  selected by the Indexation Adviser (and approved by the Note Trustee); or (2) if no  such determination is made by such Indexation Adviser within 7 days, the Index Figure  last published (or, if later, the substitute index figure last determined pursuant to  Condition 7(b)(i) (Change in base)) before the date for payment.  (c) Application of Changes  Where the provisions of Condition 7(b)(ii) (Delay in publication of Index) apply, the  determination of the Indexation Adviser as to the Index Figure applicable to the month in which  the date for payment falls shall be conclusive and binding. If, an Index Figure having been  applied pursuant to Condition 7(b)(ii)(2), the Index Figure relating to the relevant month is  subsequently published while a Note is still outstanding, then:  (i) in relation to a payment of principal or interest in respect of such Note other than upon  final redemption of such Note, the principal or interest (as the case may be) next payable  after the date of such subsequent publication shall be increased or reduced by an amount  equal to (respectively) the shortfall or excess of the amount of the relevant payment  made on the basis of the Index Figure applicable by virtue of Condition 7(b)(ii)(2),  below or above the amount of the relevant payment that would have been due if the  Index Figure subsequently published had been published on or before the fourteenth  Business Day before the date for payment; and  (ii) in relation to a payment of principal or interest upon final redemption, no subsequent  adjustment to amounts paid will be made.  (d) Cessation of or Fundamental Changes to the Index  (i) If (1) the Note Trustee has been notified by the Agent Bank (or the Calculation Agent,  if applicable) that the Index has ceased to be published; or (2) the Note Trustee has been  notified by the Agent Bank (or the Calculation Agent, if applicable) when any change  is made to the coverage or the basic calculation of the Index which constitutes a  fundamental change which would, in the opinion of the Note Trustee acting solely on  the advice of an Indexation Adviser, be materially prejudicial to the interests of the  Noteholders, the Note Trustee will give written notice of such occurrence to the  Relevant Issuer, and the Relevant Issuer and the Note Trustee together shall seek to  agree for the purpose of the Notes one or more adjustments to the Index or a substitute  index (with or without adjustments) with the intention that the same should leave the  Relevant Issuer and the Noteholders in no better and no worse position than they would  have been had the Index not ceased to be published or the relevant fundamental change  not been made.  (ii) If the Relevant Issuer and the Note Trustee fail to reach agreement as mentioned above  within 20 Business Days following the giving of notice as mentioned in paragraph (i),  a bank or other person in London shall be appointed by the Relevant Issuer and the  Note Trustee or, failing agreement on and the making of such appointment within 20  Business Days following the expiry of the day period referred to above, by the Note  

 

84    Trustee (in each case, such bank or other person so appointed being referred to as the  Expert), to determine for the purpose of the Notes one or more adjustments to the Index  or a substitute index (with or without adjustments) with the intention that the same  should leave the Relevant Issuer and the Noteholders in no better and no worse position  than they would have been had the Index not ceased to be published or the relevant  fundamental change not been made. Any Expert so appointed shall act as an expert and  not as an arbitrator and all fees, costs and expenses of the Expert and of any Indexation  Adviser and of any of the Relevant Issuer and the Note Trustee in connection with such  appointment shall be borne by the Relevant Issuer.  (iii) The Index shall be adjusted or replaced by a substitute index as agreed by the Relevant  Issuer and the Note Trustee or as determined by the Expert pursuant to the foregoing  paragraphs, as the case may be, and references in these Conditions to the Index and to  any Index Figure shall be deemed amended in such manner as the Note Trustee and the  Relevant Issuer agree are appropriate to give effect to such adjustment or replacement.  Such amendments shall be effective from the date of such notification and binding upon  the Relevant Issuer, the other Secured Creditors, the Note Trustee and the Noteholders,  and the Relevant Issuer shall give notice to the Noteholders in accordance with  Condition 18 (Notices) of such amendments as promptly as practicable following such  notification.  8. Definitions  In these Conditions:  Affiliate means in relation to any person, any entity controlled, directly or indirectly, by that  person, any entity that controls directly or indirectly, that person or any entity, directly or  indirectly under common control with that person and, for this purpose, control means control  as defined in the Companies Act;  Base Index Figure means (subject to Condition 7(b)(i) (Change in base)) the base index figure  as specified in the relevant Final Terms;  Calculation Date means any date when a payment of interest or, as the case may be, principal  falls due;  Capital and Reserves means the aggregate of:  (i) the amount paid up or credited as paid up on the share capital of the Relevant  Issuer; and  (ii) the total of the capital, revaluation and revenue reserves of the Group (as  defined below), including any share premium account, capital redemption  reserve and credit balance on the profit and loss account, but excluding sums  set aside for taxation and amounts attributable to outside shareholders in  Subsidiary Undertakings (as defined below) and deducting any debit balance  on the profit and loss account,  all as shown in the then latest audited consolidated balance sheet and profit and loss account of  the Group prepared in accordance with the historical cost convention (as modified by the  revaluation of certain fixed assets) for the purposes of the Companies Act 2006, but adjusted as  may be necessary in respect of any variation in the paid up share capital or share premium  account of the Relevant Issuer since the date of that balance sheet and further adjusted as may  be necessary to reflect any change since the date of that balance sheet in the Subsidiary  Undertakings comprising the Group and/or as the Auditors (as defined in the Trust Deed) may  consider appropriate.  

 

85    consolidated means in relation to the financial statements and accounts of the Relevant Issuer  and/or the Group, those statements and accounts as consolidated under International Financial  Reporting Standards, provided that if such consolidated accounts are not prepared, it shall mean  the non-consolidated financial statements and accounts of the Relevant Issuer prepared in  accordance with generally accepted accounting principles in the United Kingdom.  Distribution Licence means an electricity distribution licence granted under section 6(1)(c) of  the Electricity Act 1989, as amended from time to time.  Group means the Relevant Issuer and, if and to the extent it has any, its Subsidiary  Undertakings and “member of the Group” shall be construed accordingly.  Index or Index Figure means, in relation to any relevant month (as defined in Condition  7(b)(ii) (Delay in publication of Index)), subject as provided in Condition 7(b)(i) (Change in  base), either (i) the UK Retail Price Index (RPI) (for all items) published by the Office for  National Statistics (January 1987=100) (currently contained in the Monthly Digest of Statistics)  or any comparable index which may replace RPI for the purpose of calculating the amount  payable on repayment of the Reference Gilt as specified in the relevant Final Terms (ii) the UK  Consumer Price Index (CPI) (for all items) published by the Office for National Statistics  (2015=100) or any comparable index which may replace such index for the purpose of  calculating the amount payable on repayment of the Indexed Benchmark Gilt (if any); or (iii)  the UK Consumer Price Index Including Owner Occupiers’ Housing Costs (CPIH) (for all  items) published by the Office for National Statistics (2015=100), or any comparable index  which may replace such index for the purpose of calculating the amount payable on repayment  of the Index Benchmark Gilt (if any).  Where RPI is specified as the Index in the relevant Final Terms, any reference to the Index  Figure applicable (IFA) to a particular Calculation Date shall, in the case of (i) above, subject  as provided in Condition 7(b) (Changes in Circumstances Affecting the Index) and Condition  7(d) (Cessation of or Fundamental Changes to the Index), and if “3 months lag” is specified in  the relevant Final Terms, be calculated in accordance with the following formula:   = −3 + (    − 1) (  h   ) (−2 − −3)    and rounded to five decimal places (0.000005 being rounded upwards) and where:  RPIm–3 means the Index Figure for the first day of the month that is three months prior to the  month in which the payment falls due;  RPIm–2 means the Index Figure for the first day of the month that is two months prior to the  month in which the payment falls due;  Where RPI is specified as the Index in the relevant Final Terms, any reference to the IFA to a  particular Calculation Date shall, subject as provided in Condition 7(b) (Changes in  Circumstances Affecting the Index) and Condition 7(d) (Cessation of or Fundamental Changes  to the Index), and if “8 months lag” is specified in the relevant Final Terms, be construed as a  reference to the Index Figure published in the seventh month prior to that particular month and  relating to the month before that of publication.  Where CPI is specified as the Index in the relevant Final Terms, any reference to the IFA to a  particular Calculation Date shall, in the case of (ii) above, subject as provided in Condition 7(b)  (Changes in Circumstances Affecting the Index) and Condition 7(d) (Cessation of or  Fundamental Changes to the Index), be calculated in accordance with the following formula:  

 

86     = − + (    − 1) (  h   ) (−(−1) − −)    and rounded to five decimal places (0.000005 being rounded upwards) and where:  CPIm–t means the Index Figure for the first day of the month that is t months prior to the month  in which the payment falls due, where the lag period “t” has a value of 2 to 24 as specified in  the applicable Final Terms.  Where CPIH is specified as the Index in the relevant Final Terms, any reference to the IFA to  a particular Calculation Date shall, in the case of (iii) above, subject as provided in Condition  7(b) (Changes in Circumstances Affecting the Index) and Condition 7(d) (Cessation of or  Fundamental Changes to the Index), be calculated in accordance with the following formula:   = − + (   −1) (  h   ) (−(−1) − −)  and rounded to five decimal places (0.000005 being rounded upwards) and where:  CPIHm–t means the Index Figure for the first day of the month that is t months prior to the  month in which the payment falls due, where the lag period “t” has a value of 2 to 24 as specified  in the applicable Final Terms;  Index Linked Interest Notes means Notes with an Interest Basis specified as being Index  Linked Interest in the relevant Final Terms;  Index Linked Redemption Notes means Notes with a Redemption Basis specified as being  Index Linked Redemption in the relevant Final Terms;  Index Ratio applicable to any Calculation Date means the Index Figure applicable to such date  divided by the Base Index Figure;  Indexed Benchmark Gilt means the index-linked sterling obligation of the United Kingdom  Government listed on the Official List of the Financial Conduct Authority (in its capacity as  competent authority under the Financial Services and Markets Act 2000, as amended) and  traded on the London Stock Exchange that is indexed to the same Index as the Notes and whose  average maturity most closely matches that of the Notes as the Expert shall determine to be  appropriate;  Indexed Notes means Index Linked Interest Notes and Index Linked Redemption Notes;  Limited Index Ratio means (a) in respect of any month prior to the relevant Issue Date, the  Index Ratio for that month; (b) in respect of any Limited Indexation Month after the relevant  Issue Date, the product of the Limited Indexation Factor for that month and the Limited Index  Ratio as previously calculated in respect of the month twelve months prior thereto; and (c) in  respect of any other month, the Limited Index Ratio as previously calculated in respect of the  most recent Limited Indexation Month;  Limited Indexation Factor means, in respect of a Limited Indexation Month, the ratio of the  Index Figure applicable to that month divided by the Index Figure applicable to the month  twelve months prior thereto, provided that (a) if such ratio is greater than the Maximum  Indexation Factor specified in the relevant Final Terms, it shall be deemed to be equal to such  Maximum Indexation Factor and (b) if such ratio is less than the Minimum Indexation Factor  specified in the relevant Final Terms, it shall be deemed to be equal to such Minimum  Indexation Factor;  

 

87    Limited Indexation Month means any month specified in the relevant Final Terms for which  a Limited Indexation Factor is to be calculated;  Limited Indexed Notes means Indexed Notes to which a Maximum Indexation Factor and/or  a Minimum Indexation Factor (as specified in the relevant Final Terms) applies;  Maximum Indexation Factor means the indexation factor specified as such in the relevant  Final Terms;  Minimum Indexation Factor means the indexation factor specified as such in the relevant  Final Terms;   Reference Gilt means the Treasury Stock specified as such in the relevant Final Terms for so  long as such stock is in issue, and thereafter such issue of index-linked Treasury Stock  determined to be appropriate by a gilt-edged market maker or other adviser selected by the  Relevant Issuer and approved by the Note Trustee (an Indexation Adviser);  Subsidiary means a subsidiary within the meaning of section 1159 of the Companies Act 2006;  and  Subsidiary Undertaking shall have the meaning given to it by section 1162 of the Companies  Act 2006 (but, in relation to the Relevant Issuer, shall exclude any undertaking (as defined in  section 1161 of the Companies Act 2006) whose accounts are not included in the then latest  published audited consolidated accounts of the Relevant Issuer, or (in the case of an undertaking  which has first become a subsidiary undertaking of a member of the Group since the date as at  which any such audited accounts were prepared) would not have been so included or  consolidated if it had become so on or before that date).  9. Payments and Talons  (a) Bearer Notes: Payments of principal and interest in respect of Bearer Notes shall, subject as  mentioned below, be made against presentation and surrender of the relevant Notes (in the case  of all other payments of principal and, in the case of interest, as specified in Condition 9(f)(v)  (Unmatured Coupons and unexchanged Talons)) or Coupons (in the case of interest, save as  specified in Condition 9(f)(ii) (Unmatured Coupons and unexchanged Talons)), as the case may  be, at the specified office of any Paying Agent outside the United States by transfer to an  account denominated in such currency with, a Bank. Bank means a bank in the principal  financial centre for such currency or, in the case of euro, in a city in which banks have access  to the TARGET System.  (b) Registered Notes:  (i) Payments of principal in respect of Registered Notes shall be made against presentation  and surrender of the relevant Certificates at the specified office of any of the Transfer  Agents or of the Registrar and in the manner provided in paragraph (ii) below.  (ii) Interest on Registered Notes shall be paid to the person shown on the Register at the  close of business on the day before the due date for payment thereof (the Record Date).  Payments of interest on each Registered Note shall be made in the relevant currency by  cheque drawn on a Bank and mailed to the holder (or to the first named of joint holders)  of such Note at its address appearing in the Register. Upon application by the holder to  the specified office of the Registrar or any Transfer Agent before the Record Date, such  payment of interest may be made by transfer to an account in the relevant currency  maintained by the payee with a Bank.  

 

88    (c) Payments in the United States: Notwithstanding the foregoing, if any Bearer Notes are  denominated in U.S. dollars, payments in respect thereof may be made at the specified office  of any Paying Agent in New York City in the same manner as aforesaid if (i) the Relevant Issuer  shall have appointed Paying Agents with specified offices outside the United States with the  reasonable expectation that such Paying Agents would be able to make payment of the amounts  on the Notes in the manner provided above when due, (ii) payment in full of such amounts at  all such offices is illegal or effectively precluded by exchange controls or other similar  restrictions on payment or receipt of such amounts and (iii) such payment is then permitted by  United States law, without involving, in the opinion of the Relevant Issuer, any adverse tax  consequence to the Relevant Issuer.  (d) Payments subject to Fiscal Laws: All payments are subject in all cases (i) to any applicable  fiscal or other laws, regulations and directives in the place of payment, but without prejudice to  the provisions of Condition 10 (Taxation) and (ii) any withholding or deduction required  pursuant to an agreement described in Section 1471(b) of the U.S. Internal Revenue Code of  1986 (the Code) or otherwise imposed pursuant to Sections 1471 through 1474 of the Code,  any regulations or agreements thereunder, any official interpretations thereof, or (without  prejudice to Condition 10 (Taxation)) any law implementing an intergovernmental approach  thereto. No commission or expenses shall be charged to the Noteholders or Couponholders in  respect of such payments.  (e) Appointment of Agents: The Issuing and Paying Agent, the Paying Agents, the Registrar, the  Transfer Agents and the Calculation Agent initially appointed by the Issuers are listed in the  Agency Agreement. The Issuing and Paying Agent, the Paying Agents, the Registrar, the  Transfer Agents and the Calculation Agent act solely as agents of the Issuers and do not assume  any obligation or relationship of agency or trust for or with any Noteholder or Couponholder.  The Issuers reserve the right at any time with the approval of the Note Trustee to vary or  terminate the appointment of the Issuing and Paying Agent, any other Paying Agent, the  Registrar, any Transfer Agent or the Calculation Agent(s) and to appoint additional or other  Paying Agents or Transfer Agents, provided that the Issuers shall at all times maintain (i) an  Issuing and Paying Agent, (ii) a Registrar in relation to Registered Notes, (iii) a Transfer Agent  in relation to Registered Notes, (iv) one or more Calculation Agent(s) where the Conditions so  require, (v) Paying Agents having specified offices in at least two major European cities, and  (vi) such other agents as may be required by any other stock exchange on which the Notes may  be listed in each case, as approved by the Note Trustee.  Notice of any such change or any change of any specified office shall promptly be given to the  Noteholders.  (f) Unmatured Coupons and unexchanged Talons:  (i) Upon the due date for redemption of Bearer Notes which comprise Fixed Rate Notes  (other than Indexed Notes), such Notes should be surrendered for payment together  with all unmatured Coupons (if any) relating thereto, failing which an amount equal to  the face value of each missing unmatured Coupon (or, in the case of payment not being  made in full, that proportion of the amount of such missing unmatured Coupon that the  sum of principal so paid bears to the total principal due) shall be deducted from the  Final Redemption Amount, Early Redemption Amount or Optional Redemption  Amount, as the case may be, due for payment. Any amount so deducted shall be paid  in the manner mentioned above against surrender of such missing Coupon within a  period of 10 years from the Relevant Date for the payment of such principal (whether  or not such Coupon has become void pursuant to Condition 11 (Prescription)).  

 

89    (ii) Upon the due date for redemption of any Bearer Note comprising a Floating Rate Note  or Indexed Notes, unmatured Coupons relating to such Note (whether or not attached)  shall become void and no payment shall be made in respect of them.  (iii) Upon the due date for redemption of any Bearer Note, any unexchanged Talon relating  to such Note (whether or not attached) shall become void and no Coupon shall be  delivered in respect of such Talon.  (iv) Where any Bearer Note that provides that the relative unmatured Coupons are to  become void upon the due date for redemption of those Notes is presented for  redemption without all unmatured Coupons, and where any Bearer Note is presented  for redemption without any unexchanged Talon relating to it, redemption shall be made  only against the provision of such indemnity as the Relevant Issuer may require.  (v) If the due date for redemption of any Note is not a due date for payment of interest,  interest accrued from the preceding due date for payment of interest or the Interest  Commencement Date, as the case may be, shall only be payable against presentation  (and surrender if appropriate) of the relevant Bearer Note or Certificate representing it,  as the case may be. Interest accrued on a Note that only bears interest after its Maturity  Date shall be payable on redemption of such Note against presentation of the relevant  Note or Certificate representing it, as the case may be.  (g) Talons: On or after the Interest Payment Date for the final Coupon forming part of a Coupon  sheet issued in respect of any Bearer Note, the Talon forming part of such Coupon sheet may  be surrendered at the specified office of the Issuing and Paying Agent in exchange for a further  Coupon sheet (and if necessary another Talon for a further Coupon sheet) (but excluding any  Coupons that may have become void pursuant to Condition 11 (Prescription)).  (h) Non-Business Days: Subject as provided in the relevant Final Terms, if any date for payment  in respect of any Note or Coupon is not a business day, the holder shall not be entitled to  payment until the next following business day nor to any interest or other sum in respect of such  postponed payment. In this paragraph, business day means a day (other than a Saturday or a  Sunday) on which banks are open for presentation and payment of debt securities and for  dealings in foreign currency in the relevant place of presentation in such jurisdiction as shall be  specified as Additional Financial Centre(s) in the relevant Final Terms and (in the case of a  payment in a currency other than euro), where payment is to be made by transfer to an account  maintained with a bank in the relevant currency, on which dealings may be carried on in the  relevant currency in the principal financial centre of the country of such currency and, in  relation to any sum payable in euro, a day on which the TARGET System is open.  10. Taxation  All payments of principal and interest by or on behalf of the Relevant Issuer in respect of the  Notes, and the Coupons shall be made free and clear of, and without withholding or deduction  for or on account of, any present or future taxes, duties, assessments or governmental charges  of whatever nature imposed, levied, collected, withheld or assessed by or within the United  Kingdom or any authority therein or thereof having power to tax, unless such withholding or  deduction is required by law. In that event, the Relevant Issuer shall pay such additional  amounts as shall result in receipt by the Noteholders and Couponholders of such amounts as  would have been received by them had no such withholding or deduction been required, except  that no such additional amounts shall be payable with respect to any Note or Coupon:  (a) Other connection: to, or to a third party on behalf of, a holder who is liable for such  taxes, duties, assessments or governmental charges in respect of such Note or Coupon  by reason of his having some connection with the United Kingdom other than the mere  holding of the Note or Coupon; or  

 

90    (b) Lawful avoidance of withholding: to, or to a third party on behalf of, a holder who  could lawfully avoid (but has not so avoided) such deduction or withholding by  complying or procuring that any third party complies with any statutory requirements  or by making or procuring that any third party makes a declaration of non-residence or  other similar claim for exemption to any tax authority in the place where the relevant  Note (or the Certificate representing it) or Coupon is presented for payment; or  (c) Presentation more than 30 days after the Relevant Date: presented or surrendered  (or in respect of which the Certificate representing it is presented or surrendered) for  payment more than 30 days after the Relevant Date except to the extent that the holder  of it would have been entitled to such additional amounts on presenting it for payment  on the thirtieth day.  As used in these Conditions, Relevant Date in respect of any Note or Coupon means the date  on which payment in respect of it first becomes due or (if any amount of the money payable is  improperly withheld or refused) the date on which payment in full of the amount outstanding is  made or (if earlier) the date seven days after that on which notice is duly given to the  Noteholders that, upon further presentation of the Note (or relative Certificate) or Coupon being  made in accordance with the Conditions, such payment will be made, provided that payment is  in fact made upon such presentation. References in these Conditions to (i) principal shall be  deemed to include any premium payable in respect of the Notes, Final Redemption Amounts,  Early Redemption Amounts, Optional Redemption Amounts, Amortised Face Amounts and all  other amounts in the nature of principal payable pursuant to Condition 6 (Redemption, Purchase  and Options) or any amendment or supplement to it, (ii) interest shall be deemed to include all  Interest Amounts and all other amounts payable pursuant to Condition 5 (Interest and other  Calculations) or any amendment or supplement to it and (iii) principal and/or interest shall be  deemed to include any additional amounts that may be payable under this Condition or any  undertaking given in addition to or in substitution for it under the Trust Deed.  11. Prescription  Claims against the Relevant Issuer for payment in respect of the Notes and Coupons (which,  for this purpose, shall not include Talons) shall be prescribed and become void unless made  within 10 years (in the case of principal) or five years (in the case of interest) from the  appropriate Relevant Date in respect of them.  12. Events of Default  If any of the following events (Events of Default) occurs and is continuing, the Note Trustee  at its discretion may, and if so requested by holders of at least one-quarter in nominal amount  of the Notes then outstanding or if so directed by an Extraordinary Resolution shall, give notice  to the Relevant Issuer that the Notes are, and they shall immediately become, due and payable  at their Early Redemption Amount together (if applicable) with accrued interest:  (i) Non-Payment: if default is made in the payment of any principal or interest due in  respect of the Notes or any of them and the default continues for a period of 14 days in  the case of principal and 21 days in the case of interest or, where relevant, the Relevant  Issuer, having become obliged to redeem, purchase or procure the purchase of (as the  case may be) any Notes pursuant to Condition 6 (Redemption, Purchase and Options)  fails to do so within a period of 14 days of having become so obliged; or  (ii) Breach of Other Obligations: the Relevant Issuer does not perform, observe or  comply with any one or more of its other obligations, covenants, conditions or  provisions under the Notes or the Trust Deed and (except where the Note Trustee shall  have certified to the Issuer in writing that it considers such failure to be incapable of  remedy in which case no such notice or continuation as is hereinafter mentioned will  

 

91    be required) the failure continues for the period of 30 days (or such longer period as the  Note Trustee may in its absolute discretion permit) next following the service by the  Note Trustee on the Issuer of notice requiring the same to be remedied; or  (iii) Cross-Acceleration: if (A) any other indebtedness for borrowed money (as defined in  Condition 4 (Negative Pledge and Restriction on Distribution of Dividends) but, for the  purposes of this paragraph (iii), excluding Non-recourse Indebtedness) of the Relevant  Issuer or any Principal Subsidiary becomes due and repayable prior to its stated  maturity by reason of a default or (B) any such indebtedness for borrowed money is not  paid when due or, as the case may be, within any applicable grace period (as originally  provided) or (C) the Relevant Issuer or any Principal Subsidiary fails to pay when due  (or, as the case may be, within any originally applicable grace period) any amount  payable by it under any present or future guarantee for, or indemnity in respect of, any  indebtedness for borrowed money of any person or (D) any security given by the  Relevant Issuer or any Principal Subsidiary for any indebtedness for borrowed money  of any person or any guarantee or indemnity of indebtedness for borrowed money of  any person becomes enforceable by reason of default in relation thereto and steps are  taken to enforce such security save in any such case where there is a bona fide dispute  as to whether the relevant indebtedness for borrowed money or any such guarantee or  indemnity as aforesaid shall be due and payable, provided that the aggregate amount of  the relevant indebtedness for borrowed money in respect of which any one or more of  the events mentioned above in this paragraph (iii) has or have occurred equals or  exceeds whichever is the greater of £20,000,000 or its equivalent in other currencies  (on the basis of the middle spot rate for the relevant currency against pounds sterling as  quoted by any leading bank on the day on which this paragraph (iii) applies) and two  per cent. of the Capital and Reserves; or  (iv) Enforcement Proceedings: a distress, attachment, execution or other legal process is  levied, enforced or sued out on or against any substantial part of the property, assets or  revenues of the Relevant Issuer and is not discharged or stayed within 90 days; or  (v) Insolvency: the Relevant Issuer is (or is, or could be, deemed by law or a court to be)  insolvent or bankrupt or unable to pay its debts, stops, suspends or threatens to stop or  suspend payment of its debts generally or a material part of a particular type of its debts,  proposes or makes a general assignment or an arrangement or composition with or for  the benefit of the relevant creditors in respect of any of such debts or a moratorium is  agreed or declared or comes into effect in respect of or affecting its debts generally or  any part of a particular type of the debts of the Relevant Issuer; or  (vi) Winding-up: (A) an administrator or liquidator is appointed in relation to the Relevant  Issuer (and, in each case, not discharged within 90 days) or (B) an order is made or an  effective resolution passed for the winding-up or dissolution or administration of the  Relevant Issuer, or (C) the Relevant Issuer shall apply or petition for a winding-up or  administration order in respect of itself or (D) the Relevant Issuer ceases or threatens  to cease to carry on all or substantially all of its business or operations, in each case  ((A) to (D) inclusive) except for the purpose of and followed by a reconstruction,  amalgamation, reorganisation, merger or consolidation on terms approved by the Note  Trustee or by an Extraordinary Resolution (as defined in the Trust Deed) of the  Noteholders; or  (vii) Nationalisation: the seizure, compulsory acquisition, expropriation or nationalisation  (whether compulsory or otherwise, of a material part, and whether or not for fair  compensation) of all or a material part of the assets of the Relevant Issuer by a  Governmental Agency; or  

 

92    (viii) Illegality: it is or will become unlawful for the Relevant Issuer to perform or comply  with any one or more of its obligations under any of the Notes or the Trust Deed,  provided that in the case of paragraph (ii) the Note Trustee shall have certified (without liability  on its part) that in its opinion such event is materially prejudicial to the interests of the  Noteholders.  (ix) Definitions: in this Condition:  Excluded Subsidiary means any Subsidiary (as defined in Condition 4 (Negative Pledge and  Restriction on Distribution of Dividends)) of the Relevant Issuer:  (A) which is a single purpose company whose principal assets and business are constituted  by the ownership, acquisition, development and/or operation of an asset;  (B) none of whose indebtedness for borrowed money in respect of the financing of such  ownership, acquisition, development and/or operation of an asset is subject to any  recourse whatsoever to any member of the Group (other than another Excluded  Subsidiary) in respect of the repayment thereof, except as expressly referred to in  subparagraph (B)(II). of the definition of Non-recourse Indebtedness below; and  (C) which has been designated as such by the Relevant Issuer by written notice to the Note  Trustee, provided that the Relevant Issuer may give written notice to the Note Trustee  at any time that any Excluded Subsidiary is no longer an Excluded Subsidiary,  whereupon it shall cease to be an Excluded Subsidiary.  Governmental Agency includes, in relation to a state or supranational organisation, any  agency, authority, central bank, department, government, legislature, ministry, official or public  person (whether autonomous or not) of, or the government of, that state or supranational  organisation.   Non-recourse Indebtedness means any indebtedness for borrowed money:  (A) which is incurred by an Excluded Subsidiary; or  (B) in respect of which the person or persons to whom any such indebtedness for borrowed  money is or may be owed by the relevant borrower (whether or not a member of the  Group) has or have no recourse whatsoever to any member of the Group (other than an  Excluded Subsidiary) for the repayment thereof other than:  I. recourse to such borrower for amounts limited to the cash flow or net cash flow  (other than historic cash flow or historic net cash flow) from any specific asset  or assets over or in respect of which security has been granted in respect of such  indebtedness for borrowed money; and/or  II. recourse to such borrower for the purpose only of enabling amounts to be  claimed in respect of such indebtedness for borrowed money in an enforcement  of any encumbrance given by such borrower over any such asset or assets or  the income, cash flow or other proceeds deriving therefrom (or given by any  shareholder or the like in the borrower over its shares or the like in the capital  of the borrower) to secure such indebtedness for borrowed money, provided  that (aa) the extent of such recourse to such borrower is limited solely to the  amount of any recoveries made on any such enforcement, and (bb) such person  or persons is/are not entitled, by virtue of any right or claim arising out of or in  connection with such indebtedness for borrowed money, to commence  proceedings for the winding up or dissolution of the borrower or to appoint or  

 

93    procure the appointment of any receiver, trustee or similar person or officer in  respect of the borrower or any of its assets (save for the assets the subject of  such encumbrance); and/or  III. recourse to such borrower generally, or directly or indirectly to a member of  the Group, under any form of assurance, undertaking or support, which  recourse is limited to a claim for damages (other than liquidated damages and  damages required to be calculated in a specified way) for breach of an  obligation (not being a payment obligation or an obligation to procure payment  by another or an indemnity in respect thereof or any obligation to comply or to  procure compliance by another with any financial ratios or other tests of  financial condition) by the person against whom such recourse is available.  Principal Subsidiary at any time shall mean each Subsidiary of the Relevant Issuer (in each  case not being an Excluded Subsidiary or any other Subsidiary of the Relevant Issuer, as the  case may be, whose only indebtedness for borrowed money is Non-recourse Indebtedness):  (A) whose (a) profits on ordinary activities before tax or (b) gross assets, in each case  attributable to the Relevant Issuer represent 20 per cent. or more of the consolidated  profits on ordinary activities before tax of the Group or, as the case may be,  consolidated gross assets of the Group, in each case as calculated by reference to the  then latest audited financial statements of such Subsidiary (consolidated in the case of  a company which itself has Subsidiaries) and the then latest audited consolidated  financial statements of the Group provided that in the case of a Subsidiary acquired  after the end of the financial period to which the then latest audited consolidated  financial statements of the Group relate, the reference to the then latest audited  consolidated financial statements of the Group for the purposes of the calculation above  shall, until consolidated financial statements for the financial period in which the  acquisition is made have been prepared and audited as aforesaid, be deemed to be a  reference to such first-mentioned financial statements as if such Subsidiary had been  shown in such financial statements by reference to its then latest relevant audited  financial statements, adjusted as deemed appropriate by the Auditors; or  (B) to which is transferred all or substantially all of the business, undertaking and assets of  a Subsidiary of the Relevant Issuer which immediately prior to such transfer is a  Principal Subsidiary, whereupon the transferor Subsidiary shall cease to be a Principal  Subsidiary and the transferee Subsidiary shall cease to be a Principal Subsidiary under  the provisions of this sub-paragraph (B), upon publication of its next audited financial  statements (but without prejudice to the provisions of sub-paragraph (A) above) but so  that such transferor Subsidiary or such transferee Subsidiary may be a Principal  Subsidiary of the Relevant Issuer on or at any time after the date on which such audited  financial statements have been published by virtue of the provisions of sub-paragraph  (A) above or before, on or at any time after such date by virtue of the provisions of this  sub-paragraph (B).  A certificate by two directors of the Relevant Issuer that, in their opinion, a Subsidiary of the  Relevant Issuer is or is not or was or was not at any particular time or throughout any specified  period a Principal Subsidiary may be relied upon by the Note Trustee without further enquiry  or evidence and the Note Trustee will not be responsible or liable for any loss occasioned by  acting on such a certificate and, if relied upon by the Note Trustee, shall be conclusive and  binding on all parties, whether or not addressed to each such party.  13. Meetings of Noteholders, Modification, Waiver and Substitution  (a) Meetings of Noteholders: The Trust Deed contains provisions for convening meetings of  Noteholders of one or more Series of Notes to consider any matter affecting their interests,  

 

94    including the sanctioning by Extraordinary Resolution (as defined in the Trust Deed) of a  modification of any of these Conditions or any provisions of the Trust Deed. Such a meeting  may be convened by Noteholders holding not less than 10 per cent. in nominal amount of the  affected Series of Notes for the time being outstanding. The quorum for any meeting convened  to consider an Extraordinary Resolution shall be two or more persons holding or representing  one more than 50 per cent. in nominal amount of the affected Series of Notes for the time being  outstanding, or at any adjourned meeting one or more persons being or representing  Noteholders whatever the nominal amount of the affected Series of Notes held or represented,  unless the business of such meeting includes consideration of proposals, inter alia:  (i) to amend the dates of maturity or redemption of the Notes or any date for payment of  interest or Interest Amounts on the Notes;  (ii) to reduce or cancel the nominal amount of, or any premium payable on redemption of,  the Notes;  (iii) to reduce the rate or rates of interest in respect of the Notes or to vary the method or  basis of calculating the rate or rates or amount of interest or the basis for calculating  any Interest Amount in respect of the Notes;  (iv) if a Minimum and/or a Maximum Rate of Interest or Redemption Amount is shown in  the Final Terms, to reduce any such Minimum and/or Maximum;  (v) to vary any method of, or basis for, calculating the Final Redemption Amount, the Early  Redemption Amount or the Optional Redemption Amount, including the method of  calculating the Amortised Face Amount;  (vi) to vary the currency or currencies of payment or denomination of the Notes;  (vii) to sanction the exchange or substitution for the Notes of, or the conversion of the Notes  into, shares, bonds or other obligations or securities of the Relevant Issuer, whether or  not those rights arise under the Trust Deed; or  (viii) to modify the provisions concerning the quorum required at any meeting of Noteholders  or the majority required to pass the Extraordinary Resolution,  in which case the necessary quorum shall be two or more persons holding or representing not  less than 75 per cent., or at any adjourned meeting not less than 25 per cent., in nominal amount  of the affected Series of Notes for the time being outstanding. Any Extraordinary Resolution  duly passed shall be binding on all Noteholders (whether or not they were present at the meeting  at which such resolution was passed) and on all Couponholders.  The Trust Deed provides that a resolution in writing signed by or on behalf of the holders of  not less than 75 per cent. in nominal amount of the Notes outstanding shall for all purposes be  as valid and effective as an Extraordinary Resolution passed at a meeting of affected Series of  Noteholders duly convened and held. Such a resolution in writing may be contained in one  document or several documents in the same form, each signed by or on behalf of one or more  Noteholders.  (b) Modification of the Trust Deed: The Note Trustee may agree, without the consent of the  Noteholders or Couponholders, (i) to any modification of any of the provisions of the Trust  Deed or the Notes, or Coupons or these Conditions that is of a formal, minor or technical nature  or is made to correct a manifest error, and (ii) if in the opinion of the Note Trustee the interests  of the Noteholders will not be materially prejudiced thereby, to any other modification (except  as mentioned in the Trust Deed), and any waiver or authorisation of any breach or proposed  breach of any of the provisions of the Trust Deed or the Notes, or Coupons or these Conditions,  

 

95    or determine that any Event of Default shall not be treated as such. Any such modification,  authorisation or waiver shall be binding on the Noteholders and the Couponholders and, if the  Note Trustee so requires, such modification shall be notified to the Noteholders as soon as  practicable.  (c) Substitution: The Note Trustee may agree, subject to the execution of a deed or undertaking  supplemental to the Trust Deed in form and manner satisfactory to the Note Trustee and such  other conditions as the Note Trustee may require, but without the consent of the Noteholders or  the Couponholders, to the substitution of the Relevant Issuer’s successor in business in place of  the Relevant Issuer or of any previous substituted company, as principal debtor under the Trust  Deed and the Notes. In the case of such a substitution the Note Trustee may agree, without the  consent of the Noteholders or the Couponholders, to a change of the law governing the Notes,  the Coupons, the Talons and/or the Trust Deed provided that such change would not in the  opinion of the Note Trustee be materially prejudicial to the interests of the Noteholders.  (d) Entitlement of the Note Trustee: In connection with the exercise of its functions (including  but not limited to those referred to in this Condition) the Note Trustee shall have regard to the  interests of the Noteholders as a class and shall not have regard to the consequences of such  exercise for individual Noteholders or Couponholders and the Note Trustee shall not be entitled  to require, nor shall any Noteholder or Couponholder be entitled to claim, from the Relevant  Issuer any indemnification or payment in respect of any tax consequence of any such exercise  upon individual Noteholders or Couponholders.  (e) Modifications  These Conditions may be amended, modified or varied in relation to any Series of Notes by the  terms of the relevant Final Terms in relation to such Series.  14. Enforcement  At any time after the occurrence of an Event of Default which is continuing, and, in the case of  paragraph (ii) of Condition 12 (Events of Default) where the Note Trustee has certified (without  liability on its part) that in its opinion such event is materially prejudicial to the interests of the  Noteholders, the Note Trustee may, at its discretion and without further notice, institute such  proceedings against the Relevant Issuer as it may think fit to enforce the terms of the Trust  Deed, the Notes and the Coupons, but it need not take any such proceedings unless (a) it shall  have been so directed by an Extraordinary Resolution or so requested in writing by Noteholders  holding at least one-quarter in nominal amount of the Notes outstanding, and (b) it shall have  been indemnified and/or secured and/or prefunded to its satisfaction. No Noteholder or  Couponholder may proceed directly against the Relevant Issuer unless the Note Trustee, having  become bound so to proceed, fails to do so within a reasonable time and such failure is  continuing.  15. Indemnification of the Note Trustee  The Trust Deed contains provisions for the indemnification of the Note Trustee and for its relief  from responsibility. The Note Trustee is entitled to enter into business transactions with the  Issuers and any entity related to the Issuers without accounting for any profit.  The Note Trustee may rely without liability on a report, confirmation or certificate or any advice  of any accountants, financial advisers, financial institution or any other expert, whether or not  addressed to it and whether their liability in relation thereto is limited (by its terms or by any  engagement letter relating thereto entered into by the Note Trustee or in any other manner) by  reference to a monetary cap, methodology or otherwise. The Note Trustee may accept and shall  be entitled to rely on any such report, confirmation or certificate or advice and such report,  

 

96    confirmation or certificate or advice shall be binding on the Issuers, the Note Trustee and the  Noteholders.  16. Replacement of Notes, Certificates, Coupons and Talons  If a Note, Certificate, Coupon or Talon is lost, stolen, mutilated, defaced or destroyed, it may  be replaced, subject to applicable laws, regulations and stock exchange or other relevant  authority regulations, at the specified office of the Issuing and Paying Agent in London (in the  case of Bearer Notes, Coupons or Talons) and of the Registrar (in the case of Certificates) or  such other Paying Agent or Transfer Agent, as the case may be, as may from time to time be  designated by the Relevant Issuer for the purpose and notice of whose designation is given to  Noteholders, in each case on payment by the claimant of the fees and costs incurred in  connection therewith and on such terms as to evidence, security and indemnity (which may  provide, inter alia, that if the allegedly lost, stolen or destroyed Note, Certificate, Coupon or  Talon is subsequently presented for payment or, as the case may be, for exchange for further  Coupons, there shall be paid to the Relevant Issuer on demand the amount payable by the  Relevant Issuer in respect of such Notes, Certificates, Coupons or further Coupons) and  otherwise as the Relevant Issuer may require. Mutilated or defaced Notes, Certificates, Coupons  or Talons must be surrendered before replacements will be issued.  17. Further Issues  The Relevant Issuer may from time to time without the consent of the Noteholders or  Couponholders create and issue further securities either having the same terms and conditions  as the Notes in all respects (or in all respects save for the Issue Date, Interest Commencement  Date and Issue Price) and so that such further issue shall be consolidated and form a single  series with the outstanding securities of any series (including the Notes) or upon such different  terms as the Relevant Issuer may determine at the time of their issue. References in these  Conditions to the Notes include (unless the context requires otherwise) any other securities  issued pursuant to this Condition and forming a single series with the Notes. Any further issues  may be constituted by the Trust Deed or any deed supplemental to it. The Trust Deed contains  provisions for convening a single meeting of the Noteholders and the holders of securities of  other series where the Note Trustee so decides.  18. Notices  Notices to the holders of Registered Notes shall be mailed to them at their respective addresses  in the Register and deemed to have been given on the fourth weekday (being a day other than a  Saturday or a Sunday) after the date of mailing. Notices to the holders of Bearer Notes shall be  valid if published in a daily newspaper of general circulation in London (which is expected to  be the Financial Times). If in the opinion of the Note Trustee any such publication is not  practicable, notice shall be validly given if published in another leading daily English language  newspaper with general circulation in Europe. Any such notice shall be deemed to have been  given on the date of such publication or, if published more than once or on different dates, on  the first date on which publication is made, as provided above.  Couponholders shall be deemed for all purposes to have notice of the contents of any notice  given to the holders of Bearer Notes in accordance with this Condition.  19. Contracts (Rights of Third Parties) Act 1999  No person shall have any right to enforce any term or condition of the Notes under the Contracts  (Rights of Third Parties) Act 1999.  

 

97    20. Governing Law and Jurisdiction  (a) Governing Law: The Trust Deed, the Notes, the Coupons and the Talons and any non- contractual obligations arising out of or in connection with them are governed by, and shall be  construed in accordance with, English law.  (b) Jurisdiction: The Courts of England are to have jurisdiction to settle any disputes that may  arise out of or in connection with any Notes, Coupons or Talons and accordingly any legal  action or proceedings arising out of or in connection with any Notes, Coupons or Talons  (Proceedings) may be brought in such courts. The Issuers have in the Trust Deed irrevocably  submitted to the jurisdiction of such courts.  

 

98    USE OF PROCEEDS  The net proceeds from each issue of Notes will be applied by the Relevant Issuer for its general  corporate purposes.  

 

99    DESCRIPTION OF THE ISSUERS  The four Issuers, WPDE, WPDW, WPD South West and WPD South Wales are the regulated monopoly  distributors of electricity in the Midlands area of England, the South West of England and South Wales.  All four companies are indirectly wholly owned subsidiaries of Western Power Distribution plc.,  (registered number 09223384) (WPD, together with WPD Distribution Network Holdings Ltd  (registered number 08857746), WPDE, WPDW, WPD South West and WPD South Wales, the WPD  Group). The WPD Group is an indirectly wholly owned subsidiary of PPL WPD Ltd whose registered  number is 09172857 and whose registered office is Avonbank, Feeder Road, Bristol, BS2 0TB. The  ultimate parent of PPL WPD Limited is PPL Corporation (PPL), an energy and utility holding company  based in Pennsylvania, USA. The WPD Group has been wholly-owned by PPL since 6 September 2002.  Each of the four Issuers is regulated by the Great Britain Office of Gas and Electricity Markets (Ofgem).  Key Strengths  The Issuers believe they have possession of key operational and credit strengths outlined below. The  offer of Notes under the Programme presents an opportunity to invest in an investment grade regulated  UK electricity distribution network business that benefits from:  • A stable, well established transparent regulatory regime;  • Strong and predictable operating cash flow;  • No volume risk;  • Inflation linked earnings and asset base;  • Positive cash flow generation before financing;  • Industry leading delivery of Ofgem output targets; and  • Accurate forecasting and efficient delivery of investment programmes.  Description of WPDE   WPDE is the regulated monopoly distributor of electricity in the East Midlands area of England. WPDE  was incorporated as a public limited company under the Companies Act 1985 on 1 April 1989. The  registered office of WPDE is at Avonbank, Feeder Road, Bristol, BS2 0TB and its telephone number is  + 44-117- 9332000. WPDE joined the WPD Group on 1 April 2011.   At the date of this Prospectus WPDE has no subsidiary companies.  WPDE was formerly known as Central Networks East plc and changed its name to Western Power  Distribution (East Midlands) plc on 1 April 2011.  Description of Principal Activity of WPDE  WPDE is one of the 14 regulated electricity distribution network operators (DNO) in England, Wales  and Scotland. It is the regulated distributor of electricity with a distribution licence authorising it to  distribute electricity in the East Midlands area of England and its principal activity is the distribution of  electricity to industrial, commercial and domestic customers within its regulated area.  Its network covers approximately 16,000 square kilometres, extending from the Lincolnshire coast to  the outskirts of Coventry, and from Milton Keynes in the south to the Derbyshire Peak District in the  north. As a result, it serves a diverse customer base including large urban areas such as Nottingham,  Derby, Northampton and Leicester, as well as rural communities.  

 

100    As at 31 March 2019, WPDE distributed electricity to over 2.7 million customers through  approximately 100,000 kilometres of network.  Western Power Distribution (East Midlands) plc Distribution Service Area map      Description of WPDW  WPDW is the regulated monopoly distributor of electricity in the West Midlands area of England.  WPDW was incorporated as a public limited company under the Companies Act 1985 on 1 April 1989.  The registered office of WPDW is at Avonbank, Feeder Road, Bristol, BS2 0TB and its telephone  number is + 44-117-9332000. WPDW joined the WPD Group on 1 April 2011.   At the date of this Prospectus WPDW has no subsidiary companies.  WPDW was formerly known as Central Networks West plc and changed its name to Western Power  Distribution (West Midlands) plc on 1 April 2011.  Description of Principal Activity of WPDW  WPDW is also one of the 14 DNOs in England, Wales and Scotland. It is the regulated distributor of  electricity with a distribution licence authorising it to distribute electricity in the West Midlands area of  England and its principal activity is the distribution of electricity to industrial, commercial and domestic  customers.   Its network covers approximately 13,300 square kilometres, extending from the outskirts of Bristol in  the South to Staffordshire in the North and from approximately the M6 motorway to the Welsh border.  As a result, WPDW serves a diverse customer base including England’s second largest city,  Birmingham, as well as rural communities.  As at 31 March 2019, WPDW distributed electricity to almost 2.5 million customers through  approximately 64,000 kilometres of network.  

 

101    Western Power Distribution (West Midlands) plc Distribution Service Area map      Description of WPD South West  WPD South West is the regulated monopoly distributor of electricity in the south-western area of  England. WPD South West was incorporated as a public limited company under the Companies Act  1985 on 1 April 1989. The registered office of WPD South West is Avonbank, Feeder Road, Bristol,  BS2 0TB. Its telephone number is + 44-117-933-2000. WPD South West joined the WPD Group on 1  April 2011.  At the date of this Prospectus WPD South West has no subsidiary companies.  WPD South West was formerly known as South Western Electricity plc and changed its name to  Western Power Distribution (South West) plc on 31 July 2001.  Description of Principal Activity of WPD South West  WPD South West is also one of the 14 DNOs in England, Wales and Scotland. It is the regulated  distributor of electricity with a distribution licence authorising it to distribute electricity in the South  West area of England and its principal activity is the distribution of electricity to industrial, commercial  and domestic customers.  Its network covers approximately 14,400 square kilometres, extending from Bristol and Bath in the  northeast, southwest along the peninsula to Land’s End and beyond to the Isles of Scilly. WPD South  West serves a diverse customer base from the largest cities and towns in WPD South West’s service  area of Bath, Bristol, Exeter, Plymouth and Taunton to small rural communities.  As at 31 March 2019, WPD South West distributed electricity to almost 1.6 million customers through  approximately 51,000 kilometres of network.  

 

102    Western Power Distribution (South West) plc Distribution Service Area map      Description of WPD South Wales  WPD South Wales is the regulated monopoly distributor of electricity in South Wales. WPD South  Wales was incorporated as a public limited company under the Companies Act 1985 on 1 April 1989.  The registered office of WPD South Wales is Avonbank, Feeder Road, Bristol, BS2 0TB. Its telephone  number is + 44-117-933-2000. WPD South Wales joined the WPD Group on 1 April 2011.   At the date of this Prospectus WPD South Wales has no subsidiary companies.  WPD South Wales was formerly known as South Wales Electricity plc and changed its name to Western  Power Distribution (South Wales) plc on 31 July 2001.  Description of Principal Activity of WPD South Wales  WPD South Wales is also one of the 14 DNOs in England, Wales and Scotland. It is the regulated  distributor of electricity with a distribution licence authorising it to distribute electricity in South Wales  and its principal activity is the distribution of electricity to industrial, commercial and domestic  customers.  Its network covers approximately 11,800 square kilometres. The service area in Wales covers the south  of the country. It covers an extremely diverse region including areas such as the Brecon Beacons  National Park to the north, the Pembrokeshire Coast National Park in the West and city of Cardiff in  the south. The largest cities and towns in WPD South Wales’ service area are Cardiff, Swansea and  Newport. Most of the population of South Wales is located in the coastal belt region between Newport  and Llanelli, (to the east and west of Cardiff), or in the valleys region to the north of this coastal belt.  The remainder of the area is sparsely populated.  As at 31 March 2019, WPD South Wales distributed electricity to over 1.1 million customers through  approximately 36,000 kilometres of network.  

 

103    Western Power Distribution (South Wales) plc Distribution Service Area map      WPD Summary Group Structure Chart      Description of PPL Corporation  PPL Corporation, headquartered in Allentown, Pennsylvania, is an energy and utility holding company  that was incorporated in 1994. Through its subsidiaries, PPL provides essential energy services to over  10 million customers in the United States and the United Kingdom.  

 

104    Business Overview  The Western Power Distribution Business  WPDE, WPDW, WPD South West and WPD South Wales are all indirect subsidiaries of WPD which  is an indirect subsidiary of PPL and operate together as a single commercial entity under the brand  “Western Power Distribution”. “Western Power Distribution”, as used in this Prospectus, means the  multiparty commercial operations of WPDE, WPDW, WPD South West and WPD South Wales.  As required by Ofgem in its regulation of DNOs, WPDE, WPDW, WPD South West and WPD South  Wales, are separate legal entities, which are subject to financial ring-fencing and which hold separate  distribution licences. As a result of this, all four entities are separately assessed by Ofgem and undergo  a separate distribution price control review process (as further explained in the section entitled  “Regulation applying to the Issuers”).  However, on a management and commercial level, WPDE, WPDW, WPD South West and WPD South  Wales, are operated on a combined basis through shared divisional management serving more than 7.9  million customers.  As WPDE, WPDW, WPD South West and WPD South Wales are separate entities for legal and  regulatory purposes; they each produce accounts. The costs of shared services, employees and  operations are allocated back to each entity (as appropriate) in order to produce such accounts.  As at 31 March 2019, WPDE and WPDW had a regulated asset value (RAV) of £2.45 billion and £2.45  billion respectively. In addition the WPD South West and WPD South Wales operations had a RAV of  £1.67 billion and £1.13 billion respectively. In total Western Power Distribution have a total RAV of  £7.70 billion.  Potential investors are also referred to the section entitled “Risk Factors - Combined Operating  Activities of WPDE, WPDW, WPD South West and WPD South Wales” above.  Strategy  Monitoring the satisfaction of end users connected to the network with the quality of supply provided  is a key element of the Western Power Distribution strategy. Each Western Power Distribution entity  aims to meet or exceed all the performance criteria established by Ofgem. Network performance is  measured by two key criteria:  (a) availability: the number of customer minutes lost per connected customer (CML); and  (b) security: the number of supply interruptions (if greater than 3 minutes) recorded per 100  connected customers (CI).  All licensees who operate a distribution system are required to report annually to Ofgem on their  performance in maintaining system security and availability. The IIS incentive scheme financially  incentivises all licensees including WPDE, WPDW, WPD South West and WPD South Wales with  respect to both key measures of supply delivered to customers. Ofgem also incentivises the quality of  telephone response given to the customers when they contact the licensees, which is assessed by a  customer survey carried out on a monthly basis.  For the year 2018/19, the reported adjusted minutes lost per customer and the adjusted interruptions per  100 customers for each of the four companies were:   WPD  South West  WPD  South Wales  WPD  East Midlands  WPD  West Midlands   CI CML CI CML CI CML CI CML  

 

105    OFGEM  IIS Target  2018/19  58.5 43.8 53.1 33.4 51.0 38.0 84.1 52.8  IIS Outturn  2018/19  51.5 40.2 41.3 24.8 39.8 22.9 55.4 32.3  % Out  Performance  12.1% 8.2% 22.3% 25.7% 22.0% 39.7% 34.2% 38.8%  (Figures unaudited)  In addition to this in 2018/19, 85.0 per cent of customers off supply in the South West as a result of a  High Voltage (HV) fault were restored within one hour of a fault occurring, with the figure being 87.8%  for South Wales, 88.7% for WPDE and 89.3% for WPDW.  The Energy Ombudsman has the role of complaint handling and customer representation for the  electricity sector in the United Kingdom and replaced energywatch in October 2008.  Directors of WPDE, WPDW, WPD South West and WPD South Wales  All four entities are managed by a Board of Directors comprising the following individuals:   Name Position  Principal non- Group activities  P Swift Chief Executive Officer None  I R Williams Finance Director None  A J Sleightholm Resources and External Affairs Director None  G Halladay Operations Director None  M E Fletcher Sufficiently Independent Director* None  A J Cardew Sufficiently Independent Director* None  *As required by Ofgem.  The business address of each of the Directors is Avonbank, Feeder Road, Bristol BS2 0TB. No Director  has any actual or potential conflict of interest between his duties to WPDE, WPDW, WPD South West  and WPD South Wales and his private interests and/or other duties.   Regulation applying to the Issuers  Licences  The distribution licences held by WPDE, WPDW, WPD South West and WPD South Wales authorise  the licensees to distribute electricity for the purpose of providing a supply in Great Britain with  additional obligations under Section B of the distribution licence for any premises in the distribution  services area specified in the distribution licence. The licence exists in perpetuity, and can only be  revoked by Ofgem (giving no less than 25 years’ notice) or upon a breach of the licence. A failure of  an Issuer to comply with its licence could lead to an enforcement order being issued by Ofgem. Ofgem  has the power to levy fines of up to 10 per cent. of the turnover of an Issuer for any breach. In certain  circumstances, for example, insolvency, the distribution licence itself may be revoked. The licences  provide for a distribution services area, equating to the former authorised area of the former public  electricity suppliers in the East Midlands and the West Midlands areas of the South West of England  and South Wales, respectively, in which the respective licensee has certain specific distribution services  obligations.  

 

106    Each DNO benefits from a regional monopoly and its operations are regulated by its distribution licence.  Each DNO is subject to annual limits on its regulated revenues and the quality of supply it must provide,  and is provided with financial incentives to minimise its costs and improve the service it provides to its  customers.  Distribution Price Controls  Distribution price controls (each a Distribution Price Control) are intended to provide companies with  sufficient revenues to allow them to finance their efficient operating costs and capital investment. In  addition to setting revenues, the price controls also include targets for the overall quality of network  performance based upon the average number and duration of supply outages experienced by customers.  Companies can be either rewarded or penalised for exceeding or failing these targets.  The charges made for the use of the distribution network are regulated on the basis of annually profiled  revenues adjusted for RPI. The RPI is a measure of inflation and in RIIO-ED1 prices are set using a  forecast of RPI which is reconciled two years later for the actual RPI observed.  It is then for DNOs to develop a charging regime in accordance with Ofgem’s approved methodology  in order to recover from suppliers an amount up to the allowed revenue. Historically, these tariffs have  been a matter for each company individually but Ofgem has implemented licence conditions which  compel distributors to work together and set tariffs based upon a common methodology.  The current distribution price control was agreed with Ofgem in May 2014 for the period from 1 April  2015 to 31 March 2023. This resulted in a reduction in the price for the distribution of electricity in the  first year of RIIO-ED1 (2015/16). The decreases, before taking into account inflation, were 9.1 per cent.  for WPDE, 9.4 per cent. for WPDW and respective decreases of 17.5 per cent. and 23.8 per cent. for  South West and South Wales. For the remaining seven years of RIIO-ED1 the revenues increase  annually. All of these annual movements will have RPI inflation applied to them.  DNOs must also meet the standards of performance, which are set by Ofgem to ensure an appropriate  level of quality of supply (the Guaranteed Standards of Performance). If a company fails to provide  the level of service specified, it must make a fixed payment to the end user affected.  The objective of RIIO-ED1 is to drive real benefits for consumers; providing companies with strong  incentives to meet the challenges of delivering a sustainable energy sector at a lower cost.  Key features of the regulation of electricity distribution businesses in RIIO-ED1 and beyond, include:  (a) a move to eight year price controls with mid-point reviews restricted to outputs and whether  they remain appropriate;  (b) the RIIO-ED1 price control including an Annual Iteration Process. This allows base revenues  to be updated during the price control for financial adjustments covering tax, pension deficit  payments and the cost of debt allowed to be recovered in revenues, adjustments relating to  actual and allowed total expenditure (Totex) and the Totex Incentive Mechanism and legacy  price control adjustments from preceding price control periods. Under the Annual Iteration  Process, the financial model used to calculate base revenue is re-run using a series of revised  input values. This process calculates an incremental change to base revenue, the “MOD” term,  which is advised by 30th November preceding each regulatory year;  (c) more closely aligned regulatory and physical asset lives on new assets purchased after 2015.  This resulted in a decision to extend the regulatory depreciation lives for new expenditure on  assets installed after 1 April 2015 from 20 years to 45 years over the course of RIIO-ED1;  

 

107    (d) the delivery of 76 different outputs to customers (both qualitative and quantitative) across the  areas of safety, reliability, environment, connections, customer satisfaction and social  obligations;  (e) the introduction of a proportionate treatment concept where the degree of scrutiny of licence  holders’ business plans for any forthcoming price control period is related to the quality of the  business plan and records of previous performance, with the possibility of some companies  achieving limited scrutiny and an early settlement decision (to be known as a “Fast Track”  decision); and  (f) more clarity around the cost of capital and capitalisation policies at the beginning of the review  period as well as recognising the role of equity in financing network businesses, together with  a move to a rolling cost of debt allowance based on trailing averages of corporate bond indices.  The allowed cost of equity for each of the Issuers is 6.4 per cent. As fast tracked companies,  the cost of debt for the Issuers is calculated from a 10 year rolling average of real rates that will  be determined from the arithmetical average of the iBoxx A-rated and BBB-rated non-financial  indices (of eligible bonds greater than 10 years) less the implied 10-year gilt inflation break  evens published daily by the Bank of England. For the year 2019/20, the cost of debt for the  Issuers is set at 1.58 per cent.  The WPD business plan, covering all four DNOs, can be found on the WPD website,  https://www.westernpower.co.uk/customers-and-community/our-riioed1-business-plan. The  comprehensive plan provides details of the level of investment, the improvements in customer service,  the financing requirements, the 76 outputs, etc. that will occur within the RIIO-ED1 period.  Potential investors are also referred to the section entitled “Risk Factors – Macroeconomic, market and  regulatory risks - Regulatory Risk” above.  Customer Information  WPDE’s network, which consists of approximately 78,000 kilometres of underground cables and  22,000 kilometres of overhead line (as at 31 March 2019), distributed 25.7 terawatt hours of electricity  in the year ended 31 March 2019 to approximately 2.7 million end customers. While over 99 per cent.  of these end users are domestic premises and smaller businesses, this group accounts for 55 per cent. of  revenues and 49 per cent. of units distributed (for the year ended 31 March 2019). WPDE has  approximately 19,500 larger customers as of 31 March 2019 (large commercial and industrial customers  based on consumption above 100kW and half hourly metering) who account for the remaining 45 per  cent. of revenues and 51 per cent. of units distributed (for the year ended 31 March 2019).  WPDW’s network, which consists of approximately 41,000 kilometres of underground cables and  23,000 kilometres of overhead line (as at 31 March 2019), distributed 23.2 terawatt hours of electricity  in the year ended 31 March 2019 to approximately 2.5 million end customers. While over 99 per cent.  of these end users are domestic premises and smaller businesses, this group accounts for 55 per cent. of  revenues and 50 per cent. of units distributed (for the year ended 31 March 2019). WPDW has  approximately 19,300 larger customers as of 31 March 2019 (large commercial and industrial customers  based on consumption above 100kW and half hourly metering) who account for the remaining 45 per  cent. of revenues and 50 per cent. of units distributed (for the year ended 31 March 2019).  WPD South West’s network, which consists of approximately 23,000 kilometres of underground cables  and 28,000 kilometres of overhead line (as at 31 March 2019), distributed 13.2 terawatt hours of  electricity in the year ended 31 March 2019 to approximately 1.6 million end customers. While over 99  per cent. of these end users are domestic premises and smaller businesses, this group accounts for 67  per cent. of revenues and 59 per cent. of units distributed (for the year ended 31 March 2019). WPD  South West has approximately 10,800 larger customers as of 31 March 2019 (large commercial and  industrial customers based on consumption above 100kW and half hourly metering) who account for  

 

108    the remaining 33 per cent. of revenues and 41 per cent. of units distributed (for the year ended 31 March  2019).  WPD South Wales’ network, which consists of approximately 18,000 kilometres of underground cables  and 18,000 kilometres of overhead line (as at 31 March 2019), distributed 11.0 terawatt hours of  electricity in the year ended 31 March 2019 to approximately 1.1 million end customers. While over 99  per cent. of these end users are domestic premises and smaller businesses, this group accounts for 58  per cent. of revenues and only 44 per cent. of units distributed (for the year ended 31 March 2019).  WPD South Wales has approximately 7,200 larger customers as of 31 March 2019 (large commercial  and industrial customers based on consumption above 100kW and half hourly metering) who account  for the remaining 42 per cent. of revenues and 56 per cent. of units distributed (for the year ended 31  March 2019).  Transmission and Distribution Facilities  Electricity is transported across National Grid Electricity Transmission plc’s transmission system at  400kV or 275kV to 14 Grid Supply Points (GSPs) connected to WPDE’s distribution network, 16 GSPs  connected to WPDW’s network and 11 GSPs connected to both the WPD South West and WPD South  Wales networks; where it is transformed to 132kV and enters Western Power Distribution’s distribution  systems. 85 per cent. of all electricity that enters Western Power Distribution’s system is received at  these 52 GSPs (as at 31 March 2019). Within the last few years there has been a substantial increase in  distributed generation within the WPD area, which accounts for the remaining 15 per cent. that is  distributed by WPD.  Whilst Western Power Distribution supplies some 7.9 million connected customers, revenue is derived  via some 132 electricity suppliers operating in Western Power Distribution’s area with the following  market shares as of March 2019:  

 

109      Employee Relations  The WPD Group places considerable value on the involvement of its employees in its affairs. Staff are  kept informed of the WPD Group’s aims, objectives, performance and plans and their effect on them as  employees through newsletters, regular team briefings and other meetings, as well as through the WPD  Group’s in-house journal. Formal meetings are held regularly between senior managers and  representatives of staff and their unions to discuss matters of common interest. A series of roadshow  presentations by the directors of the WPD Group each year ensure that all staff are aware of, and can  contribute to, the WPD Group’s corporate goals.  Pensions – WPDE and WPDW  Background  WPDW and WPDE (together the Midlands Issuers) have an obligation to fund pensions in a number  of pension arrangements. The pension arrangement which currently represents the majority of the  funding the Midlands Issuers will be required to make towards their pension arrangements is the Central  Networks Group of the Electricity Supply Pension Scheme (the Central Networks Group and ESPS  respectively). The Central Networks Group is closed to new members and new employees join the  Issuers’ Defined Contribution Scheme called the Western Power Pension Scheme (or WPPS).  

 

110    The Central Networks Group is a sectionalised group of the ESPS which was established on 1 April  2011 in order to receive a transfer of the assets and liabilities of the current and former employees of  the Midlands Issuers or certain of their subsidiaries who were members of the E.On Group of the ESPS.  The third actuarial valuation of the Central Networks Group, which determined future cash  contributions payable, was completed as at 31 March 2016.  Cash contributions – Central Networks Group  The deficit repair payments currently agreed in relation to the 2016 Valuation (deficit of £603m) are as  follows:  • £81.85m per annum payable by the Midlands Issuers between 1 April 2016 to 31 March 2017, with  £81.85m plus indexation in line with the increase in RPI over the year to February 2017 for the  period from 1 April 2017 to 31 March 2018 payable in equal monthly instalments; plus  • £80m per annum for the period from 1 April 2019 to 31 March 2021 payable in equal monthly  instalments; plus  • £48m per annum for the period from 1 April 2021 to 31 March 2026 payable in equal monthly  instalments; plus  • £2.0m per annum for the period from 1 April 2017 to 31 March 2026 payable in equal monthly  instalments, in relation to the expense loading in respect of non-active members.  The estimated deficit at 31 March 2019 on a “roll-forward” basis was £382m.  Cash contributions - Other  In addition to contributions to eliminate the deficit, the Midlands Issuers will be required to pay  contributions at the required contribution rate towards the benefits that members will continue to accrue  in the Central Networks Group and the WPPS, along with contributions to meet the running costs of  the Central Networks Group and the Pension Protection Fund levies payable.  Pensions – WPD South West and WPD South Wales  Background  WPD South West and WPD South Wales (together the WW Issuers) have an obligation to fund  pensions in a number of pension arrangements. The pension arrangement requirements in relation to  the WPD ESPS Schemes currently represent the majority of the pension funding requirements the WW  Issuers will be required to meet. The WPD ESPS Schemes are closed to new members and new  employees are to join the WPPS.  In addition, WPD South Wales is the principal employer of the Western Power Utilities Pension Scheme  (WPUPS), which is a defined benefit scheme providing benefits to previous employees of various  Hyder group companies and was transferred from Hyder in April 2002. However PPL WPD Limited  has taken financial responsibility for this scheme. Hyder (in liquidation) was acquired by an affiliate of  PPL WPD Limited and previously owned WPD South Wales. WPUPS is closed to new members and  future accrual.  WPD (South Wales) is also the principal employer of the Infralec 92 Pension Scheme (I92), which is  an hybrid defined contribution/defined benefit scheme providing benefits to previous employees of a  Hyder group subsidiary company formerly known as Swalec and which was transferred from Swalec  in August 2000.  

 

111    Cash contributions – WPD Group  The deficit repair payments currently agreed in relation to the WPD Group 2016 Valuation (deficit of  £507m, including an expense reserve for non-active members)) are as follows:  • £86.966m payable by the WW Issuers between 1 April 2016 to 31 March 2017 payable in equal  monthly instalments: plus  • £86.966m plus indexation in line with the increase in the RPI over the year to February 2017 for  the period from 1 April 2017 to 31 March 2018 payable in equal monthly instalments; plus  • £86.6m per annum for the period from 1 April 2019 to 31 March 2021 payable in equal monthly  instalments; plus  • £20.9m per annum for the period from 1 April 2021 to 31 March 2026 payable in equal monthly  instalments; plus  • £1.4m per annum for the period from 1 April 2017 to 31 March 2026 payable in equal monthly  instalments, in relation to the expense loading in respect of non-active members.  The estimated deficit at 31 March 2019 on a “roll-forward” basis was £296m.  Cash contributions – WPUPS1  The deficit repair payments currently agreed in relation to the 2016 Valuation (deficit of £126m) are as  follows:  • £1,364,173 per month payable by the WW Issuers between 1 April 2016 to 31 March 2017; plus  • £80.0m lump sum payable on or before 31 January 2017; plus  • £7.0m per annum for the period from 1 April 2020 to 31 March 2026 payable in equal monthly  instalments.  The estimated funding position at 31 March 2019 on a “roll-forward” basis was £25.8m surplus. This  was mainly due to the lump-sum payment of £80m on 31 January 2017.  Cash contributions – I92  The deficit repair payments currently agreed in relation to the 2016 Valuation (deficit of £3.54m) are  as follows:  • A lump sum of £2.5m on or before 31 January 2017; plus  • £235,000 per annum payable by WPD (South Wales) plc between 31 March 2021 and 31 March  2026 (inclusive).  The estimated deficit at 31 March 2019 on a “roll-forward” basis was £0.1m. This was mainly due to  the lump-sum payment of £2.5m on 31 January 2017.    1 (Reimbursed by PPL WPD Limited – See “Pensions - WPD South West and WPD South Wales - Background”  above).  

 

112    Cash contributions – Other  In addition to contributions to eliminate the deficits, the WW Issuers will be required to pay  contributions at the required contribution rates towards the benefits that members will continue to  accrue in the WPD Group and the WPPS, along with contributions to meet the running costs of the  WPD Group, the WPUPS, the WPPS and the Pension Protection Fund levies payable.  

 

113    TAXATION  UK Taxation  The following is a summary of each Issuer’s understanding of current United Kingdom law and  published HM Revenue & Customs (HMRC) practice relating only to the United Kingdom withholding  tax treatment of payments of interest (as that term is understood for United Kingdom tax purposes) in  respect of the Notes. It does not necessarily apply where income is deemed for tax purposes to be the  income of any other person. Some aspects do not apply to certain classes of person to whom special  rules may apply and it is not intended to be exhaustive. It does not deal with any other United Kingdom  taxation implications of acquiring, holding or disposing of the Notes. The United Kingdom tax treatment  of prospective Noteholders depends on their individual circumstances and may be subject to change in  the future. Prospective Noteholders who may be subject to tax in a jurisdiction other than the United  Kingdom or who may be unsure as to their tax position should seek their own professional advice.  Interest on the Notes  Payments of interest on the Notes may be made without deduction of or withholding on account of  United Kingdom income tax provided that the Notes carry a right to interest and the Notes are and  continue to be listed on a “recognised stock exchange”, within the meaning of section 1005 of the  Income Tax Act 2007 or are admitted to trading on a multilateral trading facility operated by an EEA- regulated recognised stock exchange within the meaning of section 987 of the Income Tax Act 2007.  The London Stock Exchange is a recognised stock exchange. Securities will be treated as listed on the  London Stock Exchange if they are included in the Official List (within the meaning of, and in  accordance with, the provisions of Part 6 of the Financial Services and Markets Act 2000) and admitted  to trading on the London Stock Exchange. Provided, therefore, that the Notes carry a right to interest  and are and remain so listed on a “recognised stock exchange”, interest on the Notes will be payable  without withholding or deduction on account of United Kingdom tax.  Payments of interest on the Notes may be made without withholding or deduction on account of United  Kingdom tax where the maturity of the Notes is less than 365 days and those Notes do not form part of  a scheme or arrangement or borrowing intended to be capable of remaining outstanding for more than  364 days.  In other cases, an amount must generally be withheld from payments of interest on the Notes that have  a United Kingdom source on account of United Kingdom income tax at the basic rate (currently 20 per  cent.), subject to any other available exemptions and reliefs. However, where an applicable double tax  treaty provides for a lower rate of withholding tax (or for no tax to be withheld) in relation to a  Noteholder, HMRC can issue a notice to the Issuer to pay interest to the Noteholder without deduction  or tax (or for interest to be paid with tax deducted at the rate provided for in the relevant double tax  treaty).  Foreign Account Tax Compliance Act  Pursuant to certain provisions of the U.S. Internal Revenue Code of 1986, commonly known as  “FATCA”, a “foreign financial institution” (as defined by FATCA) may be required to withhold on  certain payments it makes (foreign passthru payments) to persons that fail to meet certain  certification, reporting or related requirements. A number of jurisdictions (including the United  Kingdom) have entered into, or have agreed in substance to, intergovernmental agreements with the  United States to implement FATCA (IGAs), which modify the way in which FATCA applies in their  jurisdictions. Under the provisions of IGAs as currently in effect, a foreign financial institution in an  IGA jurisdiction would generally not be required to withhold under FATCA or an IGA from payments  that it makes. Certain aspects of the application of FATCA provisions and IGAs to instruments such as  Notes, including whether withholding would ever be required pursuant to FATCA or an IGA with  respect to payments on instruments such as the Notes, are uncertain and may be subject to change. Even  if withholding would be required pursuant to FATCA or an IGA with respect to payments on  

 

114    instruments such as Notes, such withholding would not apply prior to the date that is two years after the  date on which final regulations defining foreign passthru payments are published in the U.S. Federal  Register and Notes characterised as debt (or which are not otherwise characterised as equity and have  a fixed term) for U.S. Federal tax purposes that are issued on or prior to the date that is six months after  the date on which final regulations defining foreign passthru payments are filed with the U.S. Federal  Register generally would be grandfathered for purposes of FATCA withholding unless materially  modified after such date (including by reason of a substitution of the Issuer). However, if additional  Notes (as described under “Terms and Conditions of the Notes – Further Issues”) that are not  distinguishable from previously issued Notes are issued after the expiration of the grandfathering period  and are subject to withholding under FATCA, then withholding agents may treat all Notes, including  the Notes offered prior to the expiration of the grandfathering period, as subject to withholding under  FATCA. Holders should consult their own tax advisers regarding how these rules may apply to their  investment in the Notes.    

 

115    SUBSCRIPTION AND SALE  The Dealers have, in the Dealer Agreement, agreed with the Issuers a basis upon which they or any of  them may from time to time agree to purchase Notes. Any such agreement will extend to those matters  stated under “Form of the Notes” and “Terms and Conditions of the Notes”. In the Dealer Agreement,  the Issuers have agreed to reimburse the Dealers for certain of their expenses in connection with the  establishment and any future update of the Programme and the issue of Notes under the Programme and  to indemnify the Dealers against certain liabilities incurred by them in connection therewith.  United States  The Notes have not been and will not be registered under the Securities Act and may not be offered or  sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an  exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.  Terms used in this paragraph have the meanings given to them by Regulation S.  The Notes are subject to U.S. tax law requirements and may not be offered, sold or delivered within the  United States or its possessions or to a United States person, except in certain transactions permitted by  U.S. tax regulations. Terms used in this paragraph have the meanings given to them by the U.S. Internal  Revenue Code of 1986 and regulations promulgated thereunder.  Each Dealer has represented and agreed, and each further Dealer appointed under the Programme will  be required to represent and agree, that, it will offer and sell Notes (i) as part of their distribution at any  time or (ii) otherwise until 40 days after the later of the commencement of the offering of any Series of  Notes or the closing date related to such Series of Notes (such period the Distribution Compliance  Period) only in accordance with Rule 903 of Regulation S under the Securities Act. Each Dealer has  further agreed, and each further Dealer appointed under the Programme will be required to agree, that  it will send to each dealer to which it sells any Notes during the distribution compliance period a  confirmation or other notice setting forth the restrictions on offers and sales of the Notes within the  United States or to, or for the account or benefit of, U.S. persons.  Until the end of the Distribution Compliance Period for any Series of Notes, an offer or sale of such  Notes within the United States by any dealer (whether or not participating in the offering) may violate  the registration requirements of the Securities Act if such offer or sale is made otherwise than in  accordance with an available exemption from registration under the Securities Act.  Each issuance of Indexed Notes shall be subject to such additional U.S. selling restrictions as the  Relevant Issuer and the relevant Dealer may agree as a term of the issuance and purchase of such Notes,  which additional selling restrictions shall be set out in the applicable Final Terms.  Prohibition of Sales to EEA Retail Investors  Unless the Final Terms (or Pricing Supplement, as the case may be) in respect of any Notes specifies  the “Prohibition of Sales to EEA Retail Investors” as “Not Applicable”, each Dealer has represented  and agreed, and each further Dealer appointed under the Programme will be required to represent and  agree, that it has not offered, sold or otherwise made available and will not offer, sell or otherwise make  available any Notes which are the subject of the offering contemplated by this Prospectus as completed  by the Final Terms (or Pricing Supplement, as the case may be) in relation thereto to any retail investor  in the European Economic Area. For the purposes of this provision:  (a) the expression retail investor means a person who is one (or more) of the following:  (i) a retail client as defined in point (11) of Article 4(1) of MiFID II;  

 

116    (ii) a customer within the meaning of the Insurance Distribution Directive, where that  customer would not qualify as a professional client as defined in point (10) of Article  4(1) of MiFID II; or  (iii) not a qualified investor as defined in the Prospectus Regulation; and  (b) the expression “offer” includes the communication in any form and by any means of sufficient  information on the terms of the offer and the Notes to be offered so as to enable an investor to  decide to purchase or subscribe the Notes.  Belgium  Each Dealer has represented, warranted and agreed that it has not offered, sold or otherwise made  available, and will not offer, sell or otherwise make available, any Notes to consumers  (consumenten/consommateurs) within the meaning of the Belgian Code of Economic Law, as amended  from time to time (Wetboek van economisch recht/Code de droit économique) (i.e., any natural person  acting for purposes which are outside his/her trade, business or profession).  The Notes may be held only by, and transferred only to, eligible investors referred to in Article 4 of the  Belgian Royal Decree of 26 May 1994, holding their securities in an exempt securities account that has  been opened with a financial institution that is a direct or indirect participant in the X/N securities and  cash clearing system.  Selling Restrictions Addressing Additional United Kingdom Securities Laws  Each Dealer has represented and agreed and each further Dealer appointed under the Programme will  be required to represent and agree that:  (a) in relation to any Notes which have a maturity of less than one year (i) it is a person whose  ordinary activities involve it in acquiring, holding managing or disposing of investments (as  principal or agent) for the purposes of its business and (ii) it has not offered or sold and will not  offer or sell any Notes other than to persons whose ordinary activities involve them in acquiring,  holding, managing or disposing of investments (as principal or as agent) for the purposes of  their businesses or who it is reasonable to expect will acquire, hold, manage or dispose of  investments (as principal or agent) for the purposes of their businesses, where the issue of the  Notes would otherwise constitute a contravention of section 19 of the FSMA by the Relevant  Issuer;  (b) it has only communicated or caused to be communicated and will only communicate or cause  to be communicated an invitation or inducement to engage in investment activity (within the  meaning of section 21 of the FSMA) received by it in connection with the issue or sale of any  Notes in circumstances in which section 21(1) of the FSMA does not apply to the Relevant  Issuer; and  (c) it has complied and will comply with all applicable provisions of the FSMA with respect to  anything done by it in relation to any Notes in, from or otherwise involving the United  Kingdom.  General  Each Dealer has agreed and each further Dealer appointed under the Programme will be required to  agree that it will (to the best of its knowledge and belief) comply with all applicable securities laws and  regulations in force in any jurisdiction in which it purchases, offers, sells or delivers Notes or possesses  or distributes this Prospectus and will obtain any consent, approval or permission required by it for the  purchase, offer, sale or delivery by it of Notes under the laws and regulations in force in any jurisdiction  

 

117    to which it is subject or in which it makes such purchases, offers, sales or deliveries and neither the  Relevant Issuer, the Note Trustee nor any of the other Dealers shall have any responsibility therefore.  Neither the Relevant Issuer, the Note Trustee nor any of the Dealers represents that Notes may at any  time lawfully be sold in compliance with any applicable registration or other requirements in any  jurisdiction, or pursuant to any exemption available thereunder, or assumes any responsibility for  facilitating such sale.  With regard to each Tranche, the relevant Dealer will be required to comply with such other restrictions  as the Relevant Issuer and the relevant Dealer shall agree.  

 

118  GENERAL INFORMATION  Authorisation  The establishment of the Programme and the issue of Notes have been duly authorised by resolutions  of the Board of Directors of WPDW passed on 4 September 2013, of WPDE passed on 4 September  2013, of WPD South West passed on 4 September 2013 and of WPD South Wales passed on 4  September 2013. The update of the Programme has been duly authorised by a resolution of the Board  of Directors of each of the Issuers passed on 2 August 2019.  Each issue of Notes under the Programme will be authorised by the Committee of the Board of Directors  of the Relevant Issuer.  Listing of Notes  It is expected that each Tranche of Notes which is to be admitted to the Official List and to trading on  the Regulated Market of the London Stock Exchange will be admitted separately as and when issued,  subject only to the issue of a Global Note or Notes initially representing the Notes of such Tranche.  Application has been made to the FCA for Notes issued under the Programme to be admitted to the  Official List and to be admitted to trading on the regulated market of the London Stock Exchange. The  listing of the Programme in respect of Notes is expected to be granted on or before 15 August 2019.  Documents Available  For the period of 12 months following the date of this Prospectus, copies of the documents referred to  in the section “Documents Incorporated by Reference” and the following documents will, when  published, be available from the registered office of each Issuer and from the specified office of the  Paying Agents for the time being in London:  (a) the memorandum and articles of association of each Issuer;   (b) the Agency Agreement;  (c) the Trust Deed; and  (d) a copy of this Prospectus and of any supplements thereto.  In addition, the documents referred to in the section “Documents Incorporated by Reference”, this  Prospectus and each Final Terms relative to the Notes which are admitted to trading on the regulated  market of the London Stock Exchange are also available at the website of the Regulatory News Service  operated by the London Stock Exchange at  http://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.  Clearing Systems  The Notes have been accepted for clearance through Euroclear and Clearstream, Luxembourg (which  are the entities in charge of keeping records). The appropriate Common Code and ISIN for each Tranche  of Notes allocated by Euroclear and Clearstream, Luxembourg will be specified in the applicable Final  Terms. If the Notes are to clear through an additional or alternative clearing system the appropriate  information will be specified in the applicable Final Terms.  The address of Euroclear is Euroclear Bank SA/NV, 1 Boulevard du Roi Albert II, B-1210 Brussels,  Belgium and the address of Clearstream, Luxembourg is Clearstream Banking, 42 Avenue JF Kennedy,  L 1855 Luxembourg.  

 

119    Conditions for determining price  The price and amount of Notes to be issued under the Programme will be determined by the Relevant  Issuer and the relevant Dealer at the time of issue in accordance with prevailing market conditions.  Material Contracts  There are no material contracts entered into other than in the ordinary course of the Issuers’ businesses  which could result in either being under an obligation or entitlement that is material to the Issuers’  ability to meet their obligations to Noteholders in respect of the Notes being issued.  Significant or Material Change  There has been no significant change in the financial position or financial performance of any of the  Issuers since 31 March 2019 to the date of this Prospectus and there has been no material adverse change  in the prospects of any of the Issuers since 31 March 2019 to the date of this Prospectus.   Litigation  There are no governmental, legal or arbitration proceedings (including any such proceedings which are  pending or threatened of which any Issuer is aware) of any of the Issuers in the 12 months preceding  the date of this document which may have or have in the recent past had a significant effect on the  financial position or profitability of any of the Issuers.   Auditors  Deloitte LLP, registered to carry out audit work by the Institute of Chartered Accountants in England  and Wales, have audited, without qualification, in accordance with International Standards on Auditing  (UK and Ireland) issued by the Auditing Practices Board the financial statements of WPD South West,  WPD South Wales, WPDW and WPDE for the financial years ended on 31 March 2018 and 31 March  2019.  Deloitte LLP, as incumbent auditors of the Issuers, do not have any material interest in any Issuer.  The audit reports in respect of the financial years ended 2018 and 2019 for WPD South West, WPD  South Wales, WPDW and WPDE contain the statement that such report is made solely to the company’s  members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and that their  audit work has been undertaken so that they might state to the company’s members those matters they  are required to state to them in an auditor’s report and for no other purpose.  Such a statement is recommended in guidance issued by the Institute of Chartered Accountants in  England and Wales for inclusion in all Section 235 and Chapter 3 of Part 16 audit reports (as applicable)  produced by audit firms.  Post-issuance information  The Issuers do not intend to provide any post-issuance information in relation to any issues of Notes.  Dealers transacting with the Issuers  Certain of the Dealers and their affiliates have engaged, and may in the future engage, in investment  banking and/or commercial banking transactions with, and may perform services for the Issuers, other  members of the WPD Group and their affiliates in the ordinary course of business. Certain of the Dealers  and their affiliates may have positions, deal or make markets in the Notes issued under the Programme,  related derivatives and reference obligations, including (but not limited to) entering into hedging  strategies on behalf of the Issuers, other members of the WPD Group and their affiliates, investor clients,  or as principal in order to manage their exposure, their general market risk, or other trading activities.  

 

120    In addition, in the ordinary course of their business activities, the Dealers and their affiliates may make  or hold a broad array of investments and actively trade debt and equity securities (or related derivative  securities) and financial instruments (including bank loans) for their own account and for the accounts  of their customers. Such investments and securities activities may involve securities and/or instruments  of the Issuers or Issuers’ affiliates. Certain of the Dealers or their affiliates that have a lending  relationship with the Issuers routinely hedge their credit exposure to the Issuers consistent with their  customary risk management policies. Typically, such Dealers and their affiliates would hedge such  exposure by entering into transactions which consist of either the purchase of credit default swaps or  the creation of short positions in securities, including potentially the Notes issued under the Programme.  Any such positions could adversely affect future trading prices of Notes issued under the Programme.  The Dealers and their affiliates may also make investment recommendations and/or publish or express  independent research views in respect of such securities or financial instruments and may hold, or  recommend to clients that they acquire, long and/or short positions in such securities and instruments. 

 

121  INDEX OF DEFINED TERMS  30/360 ............................................................... 67  30E/360 ............................................................. 67  30E/360 (ISDA) ................................................ 68  360/360 ............................................................. 67  Actual/360 ......................................................... 67  Actual/365 (Fixed) ............................................ 66  Actual/365 (Sterling) ........................................ 67  Actual/Actual .................................................... 66  Actual/Actual (ISDA) ....................................... 66  Actual/Actual-ICMA ........................................ 68  Additional Financial Centre(s) .......................... 89  Adjustment Spread ............................................ 63  Affiliate ............................................................. 84  Agency Agreement ........................................... 52  Alternative Clearing System ............................. 23  Alternative Reference Rate ............................... 63  Amortised Face Amount ................................... 72  Bank .................................................................. 87  Base Index Figure ............................................. 84  Bearer Notes...................................................... 53  Benchmark Amendments .................................. 61  Benchmark Event .............................................. 60  Benchmarks Regulation ...................................... 6  Bond Basis ........................................................ 67  borrowed money ............................................... 56  business day ................................................ 55, 89  Business Day ..................................................... 66  Calculation Agent ............................................. 58  Calculation Agent(s) ......................................... 52  Calculation Date ................................................ 84  Calculation Period ............................................. 66  Capital and Reserves ......................................... 84  Central Networks Group ................................. 109  Certificate ............................................................ 2  Certificates ........................................................ 53  Certification ...................................................... 24  CGNs .................................................................. 2  CI .................................................................... 104  Classic Global Notes ........................................... 2  Clearstream, Luxembourg ................................... 2  CML ................................................................ 104  Code .................................................................. 88  Common Depositary ........................................... 2  Common Safekeeper........................................... 2  Conditions ................................................... 40, 52  consolidated ...................................................... 85  control ............................................................... 84  Couponholders .................................................. 52  Coupons ............................................................ 52  CRA Regulation ................................................. 3  date for payment ............................................... 83  Day Count Fraction .......................................... 66  Dealer ................................................................. 1  Dealer Agreement ............................................... 1  Dealers ................................................................ 1  Definitive Notes ................................................ 25  Designated Maturity ................................... 58, 69  Determination Date........................................... 69  Determination Period ........................................ 69  Distribution Compliance Period ..................... 115  Distribution Licence ......................................... 85  Distribution Price Control .............................. 106  Distribution Services Area ................................ 79  distributor ..................................................... 5, 28  DNO ........................................................... 15, 99  DNOs ................................................................ 15  East Midlands ..................................................... 1  ECB .................................................................. 37  EEA ........................................................ 5, 28, 39  ESMA ................................................................. 3  ESPS ............................................................... 109  Eurobond Basis ................................................. 67  Euroclear ............................................................. 2  Euro-zone ......................................................... 69  Events of Default .............................................. 90  Exchange Date .................................................. 24  Excluded Subsidiary ......................................... 92  Exercise Notice ................................................. 77  Expert ............................................................... 84  FCA .................................................................... 1  Final Terms ......................................................... 2  Floating Rate .................................................... 58  Floating Rate Option ........................................ 58  FSMA ................................................................. 4  Global Certificate ............................................... 2  Global Certificates .............................................. 2  

 

122    Global Note ......................................................... 2  Group ................................................................ 85  Guaranteed Standards of Performance ............ 106  HMRC ............................................................. 113  holder ................................................................ 53  IA Determination Cut-off Date ......................... 60  ICSD ................................................................. 37  IGAs ................................................................ 113  Independent Adviser ......................................... 63  Index ................................................................. 85  Index Event ....................................................... 73  Index Figure ...................................................... 85  Index Figure applicable ..................................... 85  Index Linked Interest Notes .............................. 86  Index Linked Redemption Notes ...................... 86  Index Ratio ........................................................ 86  Indexation Adviser ............................................ 87  Indexed Notes ............................................. 18, 86  Initial Rate of Interest ....................................... 70  Insurance Mediation Directive ................ 5, 28, 39  interest ............................................................... 90  Interest Accrual Period ..................................... 69  Interest Amount ................................................ 69  Interest Commencement Date ........................... 69  Interest Determination Date .............................. 69  Interest Period ................................................... 69  Interest Period Date ........................................... 69  ISDA Definitions .............................................. 69  ISDA Rate ......................................................... 58  Issuer ....................................................... 1, 39, 52  Issuers ........................................................... 1, 52  Issuing and Paying Agent ................................. 52  Limited Index Ratio .......................................... 86  Limited Indexation Factor ................................. 86  Limited Indexation Month ................................ 87  Limited Indexed Notes ...................................... 87  London Stock Exchange ..................................... 1  Maximum Indexation Factor ............................. 87  Midlands Issuers ............................................. 109  MiFID II .................................................. 5, 28, 39  MiFID Product Governance Rules ...................... 6  Minimum Indexation Factor ............................. 87  Moody’s ........................................................ 3, 80  Negative Certification ....................................... 78  Negative Rating Event ...................................... 79  Net Debt ............................................................ 56  NGN ................................................................... 2  Non-recourse Indebtedness ............................... 92  Note Trustee ..................................................... 52  Noteholder ........................................................ 53  Notes ............................................................. 1, 52  NSS ..................................................................... 2  Official List ........................................................ 1  Ofgem ................................................... 14, 56, 99  Paying Agents ................................................... 52  permanent Global Note ....................................... 2  PPL ................................................................... 99  Pre-Maturity Call Option Date ......................... 77  Pricing Supplement............................................. 2  PRIIPs Regulation .................................. 5, 28, 39  principal ............................................................ 90  Principal Amount Outstanding ......................... 73  Principal Subsidiary .......................................... 93  Programme ......................................................... 1  Prospectus ................................................... 28, 40  Prospectus Regulation ...................... 4, 5, 28, 116  Put Date ............................................................ 79  Put Event .......................................................... 79  Put Event Notice ............................................... 79  Put Period ......................................................... 79  Rate of Interest ................................................. 69  Rated Securities ................................................ 80  Rating Agency ............................................ 71, 79  Rating Change .................................................. 71  Rating Change Period ....................................... 70  Rating Change Period End Date ....................... 70  Rating Downgrade ............................................ 80  Ratings Downgrade Rate Adjustment .............. 70  RAV ................................................................ 104  Record Date ...................................................... 87  Redeemed Notes ............................................... 75  Reference Banks ............................................... 70  Reference Gilt ................................................... 87  Reference Rate .................................................. 70  Register ............................................................. 53  Registered Notes ............................................... 53  Registrar ........................................................... 52  Regulation S ....................................................... 2  

 

123    Regulatory Asset Base ...................................... 56  Relevant Date .................................................... 90  relevant Dealer .................................................... 1  Relevant Indebtedness ...................................... 56  Relevant Interest Period .................................... 71  Relevant Issuer .............................................. 1, 52  relevant month .................................................. 83  Relevant Nominating Body ............................... 63  Relevant Screen Page ........................................ 70  Reset Date ......................................................... 58  Restructuring Event .......................................... 80  Restructuring Put Option .................................. 78  Revised Rate of Interest .................................... 71  RIIO-ED1 .......................................................... 14  RPI .............................................................. 15, 85  RPIm–2 ............................................................. 85  RPIm–3 ....................................................... 85, 86  S&P ..................................................................... 3  Securities Act ...................................................... 2  Security Interest ................................................ 55  Series ................................................................. 11  South Wales ........................................................ 1  South West .......................................................... 1  Specified Currency ............................................ 70  Stabilisation Manager(s) ..................................... 8  Standard & Poor’s ............................................. 79  Subsidiary ......................................................... 87  Subsidiary Undertaking .................................... 87  Successor Rate .................................................. 64  Swap Transaction .............................................. 58  Talons ................................................................ 52  TARGET Business Day .................................... 66  TARGET System .............................................. 70  TARGET2 ......................................................... 70  temporary Global Note ....................................... 2  Tranche ....................................................... 11, 52  Transfer Agents ................................................. 52  Trust Deed ......................................................... 52  West Midlands .................................................... 1  Western Power Pension Scheme ....................... 16  WPD .................................................................. 99  WPD ESPS Schemes ........................................ 16  WPD Group ...................................................... 99  WPD South Wales ........................................ 1, 52  WPD South Wales 2017 Annual Report .......... 21  WPD South Wales 2018 Annual Report .......... 20  WPD South West .............................................. 52  WPD South West 2017 Annual Report ............ 20  WPD South West 2018 Annual Report ............ 20  WPDE ........................................................... 1, 52  WPDE 2017 Annual Report ............................. 20  WPDE 2018 Annual Report ............................. 20  WPDW ......................................................... 1, 52  WPDW 2017 Annual Report ............................ 20  WPDW 2018 Annual Report ............................ 20  WPPS ........................................................ 16, 109  WPUPS ........................................................... 110  WW Issuers .................................................... 110    

 

124    ISSUERS  Western Power Distribution (West Midlands) plc  Avonbank  Feeder Road  Bristol BS2 0TB  United Kingdom    Western Power Distribution (South West) plc  Avonbank  Feeder Road  Bristol BS2 0TB   United Kingdom    Western Power Distribution (East Midlands) plc  Avonbank  Feeder Road  Bristol BS2 0TB   United Kingdom    Western Power Distribution (South Wales) plc  Avonbank  Feeder Road  Bristol BS2 0TB   United Kingdom    NOTE TRUSTEE    HSBC Corporate Trustee Company (UK) Limited  8 Canada Square  London E14 5HQ   United Kingdom    ISSUING AND PAYING AGENT, REGISTRAR, TRANSFER AGENT AND CALCULATION  AGENT    HSBC Bank plc  8 Canada Square  London E14 5HQ   United Kingdom    LEGAL ADVISERS  To the Issuers as to English Law    Latham & Watkins (London) LLP  99 Bishopsgate  London EC2M 3XF   United Kingdom  To the Arranger, the Dealers  and the Note Trustee as to English Law    Simmons & Simmons LLP  CityPoint   One Ropemaker Street  London EC2Y 9SS   United Kingdom  AUDITORS    Deloitte LLP  Hill House  1 Little New Street  London EC4A 3TR   United Kingdom    ARRANGER    NatWest Markets Plc  250 Bishopsgate  London EC2M 4AA   United Kingdom    DEALERS  Banco Santander, S.A.  Ciudad Grupo Santander  Edificio Encinar  Avenida de Cantabria s/n  Barclays Bank PLC  5 The North Colonnade  Canary Wharf  

 

125    28660, Boadilla del Monte  Madrid, Spain   London E14 4BB   United Kingdom  HSBC Bank plc  8 Canada Square  London E14 5HQ   United Kingdom  Lloyds Bank Corporate Markets plc  10 Gresham Street  London EC2V 7AE   United Kingdom  Merrill Lynch International   2 King Edward Street   London EC1A 1HQ  United Kingdom  Mizuho International plc  Mizuho House  30 Old Bailey  London EC4M 7AU   United Kingdom  MUFG Securities EMEA plc.  Ropemaker Place  25 Ropemaker Street  London EC2Y 9AJ   United Kingdom  NatWest Markets Plc  250 Bishopsgate  London EC2M 4AA   United Kingdom  RBC Europe Limited  Riverbank House  2 Swan Lane  London EC4R 3BF   United Kingdom

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