National Grid launches largest ever Sterling bond transaction

National Grid launches largest ever Sterling bond transaction

National Grid launches largest ever Sterling bond transaction and associated buyback programme as part of a debt portfolio reorganisation

On 13th September 2016, National Grid (“NG”), the international electricity and gas Company that connects consumers to energy sources through its networks launched a £3bn sterling bond transaction offering through its subsidiary National Grid Gas (“NGG”). This is the largest ever Sterling bond offering. Previously on 6th September 2016 the company had announced the cash tender of 9 existing group Sterling bonds with a nominal outstanding of nearly £2.9bn.

Proposed disposal

NG is currently expecting to dispose of a majority stake in its UK gas distribution business, as initially announced in November 2015. The proposed disposal will effectively result in the transfer of NGG’s gas distribution business to a newly created subsidiary of NG and the expected subsequent sale of a 51% controlling interest by NG in the subsidiary to a third party. Following the disposal, NGG will become a more focused gas transmission business.

The new bond issues and related tender offers are designed to aid the establishment of appropriate capital structures across both the new Gas Distribution business as well as the remaining NG group following the disposal.

Centrus provided financial advice to the National Grid Treasury in respect of the transactions.

George Karalis, Director at Centrus Advisors said, “We are really pleased to have supported National Grid and their Treasury team in these ground breaking transactions and would like to congratulate the whole team on the manner of the execution and the result achieved.”

Contacts

George Karalis
+44 203 846 5683

Geoff Knight
+44 203 846 5673

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