Northern Powergrid has announced that it has secured £300mn from a bond issuance to help support its new Green Finance Framework.
On 9 June, it said it had become the first British distribution network operator (DNO) to power its business investment plans and issue bonds under a Green Finance Framework. The £300mn bond issuance will have an interest rate of 1.875% fixed for 42 years. Proceeds will be invested in projects that enable and support the take-up of low-carbon energy, along with lowering its environmental impact throughout Northern Powergrid Northeast’s network licence area and across the communities it serves.
The Green Finance Framework itself, A Framework for Decarbonisation, sets out Northern Powergrid’s eco-focused funding strategy to support its multi-million pound investment plans to power and support economic growth across the North East, Yorkshire and northern Lincolnshire, both now and into the future.
Tom Fielden, Northern Powergrid’s Finance Director, said: “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. Our ‘A Framework for Decarbonisation’ strategy 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.”