National Grid, the gas and electricity operator in Britain, raised a £3.2 BN rights issue on Thursday after declaring it a ‘must need’ to take its UK capital investment program into the next level. The expected total of this program will be around £22 BN over the next five years.
Steven Holiday, the chief executive of NG, said “the issue is sized at £3.2 BN just to guarantee our financial flexibility to meet all our investment needs in upcoming years”.
“Currently our company is enjoying a very good credit reputation in the market and we’ll leave no stone unturned to maintain this ‘single-A credit rating’ in the market” added Stevens.
The UK capital investment program will create 5,500 jobs within UK and around 75% of the total £22 BN, planed to be spent in next five years, and 60 per cent of this figure would be exhausted on National Grid’s transmission businesses.
It has been reported that National Grid will offer right issue in 2/5 manner i.e. two new shares for every five existing shares. Right issue will be made upon the shares owned through the issue of 990.44m.
Some business analysts are of the view that this huge increase in National Grid’s plan is just because of that sound financial year that facilitated the group to up raise its dividend 8%.
Announcement to leave gas business and New Hampshire electricity program were also made by the Group, as it suffered a lot from adverse rigid judgments.
National Grid
