National Grid launches green bond to fund sustainability projects

National Grid has taken another significant step in leading the charge towards net zero, by today announcing the launch of the first green bond from its Green Financing Framework, issued from National Grid Electricity Transmission plc.

Raising €500million (approximately £430million), the bond’s proceeds will finance electricity transmission projects with an environmental benefit, following the guidelines set by the International Capital Markets Association Green Bond Principles.

Within renewable energy, examples of ways the funds raised could be used include funding the connection infrastructure of wind farms to the grid. For energy efficiency or cleaner transportation, the bond’s proceeds could go towards investing in projects that would reduce electricity grid losses or financing clean transport infrastructure, such as the electrification of railways.

Other potential areas cover environmentally sustainable management, such as substituting overhead lines for underground cables and pollution prevention and control. Projects will be evaluated and chosen by National Grid’s dedicated Green Financing Committee.

After announcing its intention to launch the bond on 6 January, National Grid then held three days of meetings with the investment community in Europe’s key financial centres. The bond received a high level of interest and was priced today, allowing institutional investors to participate in National Grid’s commitment to Net Zero while supporting our efforts with the clean energy transition.