Northern Powergrid has issued £300 million of green bonds to help fund investments that will support the deployment of low-carbon energy within its license areas and lower its own environmental impact.
The distribution network operator has also published a green finance framework setting out its strategy to raise capital on the basis of its contribution to tackling climate change.
“We think it makes perfect sense for us to provide an opportunity for debt investors to be able to participate in funding the investments that drive a lower-carbon future for our region,” said finance director Tom Fielden.
He said the green finance framework, which was independently assessed by DNV-GL according to standards published by the International Capital Markets Association and the Loan Markets Association, “sets out the link between the funding we attract from the financial markets and the way that the investment it supports can deliver long-term environmental benefits for our customers across the North East, Yorkshire and northern Lincolnshire.”
Interest on the bonds is fixed at a rate of 1.875 per cent for 42 years.