NIE Networks secures £350m financing to support electricity network investment

NIE Networks has raised £350 million, by way of a new bond issue to support its continuing investment programme in the electricity transmission and distribution network in Northern Ireland. The funds raised have been used to repay a maturing £175 million bond and the balance will be used to fund ongoing investment in the electricity network.

The £350 million bond was purchased primarily by UK & European institutional investors and the total amount of orders received was over double the subscription amount, which reflects investor confidence. The seven-year bond will be rated BBB+ by Standard & Poor’s Global Ratings.
NIE Networks chose to raise the required funding now to take advantage of current competitive lending rates securing an all in rate of 2.5%.
NIE Networks Managing Director Paul Stapleton has welcomed the news: “This successful bond placement reflects positively on NIE Networks’ performance over many years and its stable and robust business model”.
Mr. Stapleton added: “This is great news for all Northern Ireland’s electricity consumers as it represents a significant saving for them. It also sends a strong message about the level of confidence that investors have in Northern Ireland’s regulated energy industry. We now look forward to delivering the programme of investment in the transmission and distribution network for the benefit of all electricity consumers in Northern Ireland as part of our RP6 Price Control determined by  the Utility Regulator in June 2017.”
The bond placement was managed by Barclays Bank PLC, HSBC Bank plc, NatWest Markets Plc and RBC Europe Limited.