Green Bond Fact Sheet

National Grid

Date: 11/02/2020

Issue date: 20-01-2020 Maturity date: 20-01-2025 Tenor: 5Issuer Name

National Grid

Amount Issued

EUR500m/USD554m

Country of risk

Spain

CBI Database

Included

Issuer Type1

Non-FinancialCorporate

Bond TypeSr Unsecured

Green Bond Framework

Link to Framework

Second party opinion

DNV GL

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☒ Energy☒ Solar☒ Onshore wind
☐ Offshore wind
☐ Geothermal☒ Hydro☐ Tidal☐ Biofuels☒ Bioenergy☐ District heating☒ Electricity grid

☒ Energy storage☐ Energy performance☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☒ Certified Buildings☐ HVAC systems☒ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☒ Electric vehicles☒ Low emission
vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Waste management☒ Recycling☒ Waste prevention☒ Pollution control☐ Landfill, energy capture☒ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☒ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☒ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingCompany information

Allocation and impact reporting will be available through the company’s website or theannual report within a year from the first borrowing date and will continue until fullallocation. The allocation report will include the list of eligible green projects, the aggregatedamount of allocated proceeds to each eligible project category, the ratio of financing andrefinancing, and management of unallocated proceeds. The impact report will include
indicators such as CO2 emissions avoided, and renewable energy sources connected (MW).
National Grid owns, develops and operates the high-voltage electricity transmission
network and distribution networks in England and Wales. It also operates but doesn’t own
the Scottish networks. The utility company also operates in the North-Eastern UnitedStates.

Firsts, records andcertifications
Proceeds description

Eligible categories are the following:
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••
•

•

Climate Bonds view

Renewable energy financing connection infrastructure, transmission anddistribution infrastructure, and renewable energy generation (solar, wind, hydro,bioenergy)
Energy efficiency: power control devices, retrofits, smart equipment
Green buildings: Acquisition or construction of existing or new commercial
buildings that meet certain certification criteria and renovations of existingbuildings
Clean transportation: infrastructure, renewal of the company’s fleet
Pollution prevention and control: construction, development, operation and/or
maintenance of facilities, systems or equipment aiming at reducing greenhousegas emissions, greenhouse gas control devices, waste prevention, reduction andrecycling, transforming technology
Environmentally sustainable management of living natural resources and land
use: sustainable management and value enhancement of land, the preservation
and restoration of natural landscapes and grid improvements

Decarbonising the energy sector plays a major role in shifting to a low-carbon
economy. In addition to the process of power generation itself, it is vital to invest in
grid infrastructure and storage technologies. The National Grid is doing exactly this inorder to contribute to the UK’s target of becoming carbon neutral by 2050, whilst
adding to the yet sparse pool of 15 British green bond issuers. Volume is currently at a
total of USD15.3bn in green bonds outstanding with the largest proportions goingtowards renewable energy (29%) and water (23%) projects.
The Green Bond Framework covers a broad spectrum of eligible categories on the corebusiness side (such as connection infrastructure and retrofits to reduce energy losses)
as well as the operational side (e.g. green buildings). So far grid operators from 10
different countries have issued green bonds, mainly from Europe. We hope that thisencourages issuers from other regions to consider such projects in the future.

Underwriters

BNP, ICBC, ING, Mizuho

Deal comments
Credit Rating

A3 (Moody’s)A- (S&P)
A (Fitch)

Pricing summary•••

Interest spread: ms + 32bps
Coupon: 0.190%
Price: 100.000%

Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign