January 14 (Renewables Now) - UK electricity and gas utility National Grid (LON:NG) has placed its inaugural green bond, facing raising EUR 500 million (USD 555.8m) to finance transmission-related environmental projects.
The funds were raised in a deal with “a high level of interest” that will allow the utility to add an environmental benefit to electricity transmission projects, it said in a press release on Monday. Among the potential fields of investment are renewable energy, where financing could go for building infrastructure needed to connect wind power facilities to the grid, as well as energy efficiency and clean transportation schemes.
Part of the funds could be allocated for projects dealing with lowering power grid losses and schemes envisaging the replacement of overhead power lines with underground cabling, the utility explained. Potential projects will be picked and assessed by National Grid’s dedicated Green Financing Committee.
The placement is the first such transaction under National Grid’s green financing framework.
(EUR 1.0 = USD 1.112)