In analysis undertaken for the BBC, Martin Blaiklock, a consultant with international experience of privatised utility funding, concluded that under Macquarie's control, the total returns made by the bank and its investors from Thames Water averaged between 15.5% and 19% a year.
Mr Blaiklock has 40 years of experience in such matters and said these returns were "twice what one would normally expect".
The Environment Agency prosecuted Thames Water over the pollution and, in March this year, the company was fined £20m - a record for such an offence.
At Aylesbury Crown Court, Judge Francis Sheridan said there had been "inadequate investment, diabolical maintenance and poor management".
Assessing incidents as being in the "reckless" or "borderline deliberate" category, Judge Sheridan concluded: "Knowledge of what was going on went very high indeed."
Thames Water accepts that there was a failure of management, but denies that there was a link between the sewage pollution and high investor returns. The company points out that there have been "significant management changes" since that time.
In this letter, Sir Peter reveals that, of the £2.8bn acquisition debt, no less than £2bn had subsequently been repaid. Not by Macquarie and its investors, who had originally borrowed the money, but from new borrowings raised by Thames Water through a Cayman Islands subsidiary. Martin Blaiklock said: "That letter was a red flag to me because it showed clearly that the debt which Macquarie funds had used to buy Thames Water had been transferred over to Thames Water."
Since selling its final share of Thames Water in March this year, Macquarie and its investors are out of the picture, taking the benefit of the £2bn debt repayment with them.
Both Ofwat and UK politicians have the power to scrutinise these transactions further.
But, for Thames Water and the 15 million customers it serves, forced to pay the bills the regulator sets for them, it looks like a case of water under the bridge.
How Macquarie bank left Thames Water with extra £2bn debt
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https://www.youtube.com/watch?v=pL_YEsJsFEY


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