National Grid launches green bond to fund sustainability projects

0
885

NATIONAL Grid has announced the launch of its first green bond where the proceeds will finance UK electricity transmission projects that have environmental benefits.

Raising €500million (approximately £430million), the support will be placed 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 has already received a high level of interest.