UK water firm Severn Trent secures 530 mln pound loan

LONDON, June 2 (Reuters) - British water supplier Severn Trent (BSE: TRENT.BO - news) has secured a 530 million pound ($807 million) loan from the European Investment Bank (EIB) that it will use to invest in new projects and modernise existing infrastructure.

Severn Trent (Other OTC: STRNY - news) , whose investments and tariffs are regulated by watchdog Ofwat, will make capital investments totalling 3.3 billion pounds until 2020, as set out in the regulator's latest pricing review.

These investments include Severn Trent's 255 million pound project to modernise and enlarge its water supply network in Birmingham, the EIB said in a statement.

The EIB has previously made loans to Severn Trent but this was one of the largest ever loans it has agreed with a British water company, it said.

($1 = 0.6567 pounds) (Reporting by Karolin Schaps; Editing by Mark Potter)