National Grid has launched its first ever green bond with the aim of raising up to €500 million (£430 million) to fund electricity transmission projects with environmental benefits.
The proceeds could, for example, be used to pay for the replacement of overhead power lines with underground cables or efforts to reduce transmission losses.
However, the firm expects around three quarters to go towards the connection of renewable energy projects to the power grid. The allocation of funding will be determined by National Grid’s dedicated green financing committee.
The five-year bond will pay out an annual interest rate of 0.19 per cent.
The company has held three days of meetings with investors in Europe’s key financial centres since announcing the launch on 6 January and says it has seen a “high level of interest”.