Investors reacted warmly to Western Power Distribution's (WPD) tender for sterling bonds issued by Hyder, the Welsh multi-utility it bought after a bitter and protracted battle with Nomura's principal finance group.

WPD offered to buy back outstanding Hyder bonds worth around £875m (€1.4bn) at far more attractive rates than investors could have realised in the open market. The bonds ranged in maturities from those due to mature in 2002 to those that would have remained outstanding until 2020. Most were issued by Hyder subsidiary Welsh Water Utilities Finance.