Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

National Grid Company plans pounds 300m debt buyback

Tuesday 05 July 1994 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

NATIONAL Grid Company, which transmits electricity throughout England and Wales, is to buy back two pounds 150m tranches of government debt injected when the industry was privatised.

NGC, owned by the 12 regional electricity companies, said the total bill would come to pounds 333.3m. A charge of pounds 33.3m in relation to the redemption will be charged to the profit and loss account in the current financial year.

The company said the deal would be financed through cash and short-term borrowings. It would not comment on speculation that it would save pounds 5m on interest charges this year and about pounds 8m in subsequent years.

NGC, which hopes to be floated on the stock market, made a pre- tax profit last year of pounds 579.5m, up from pounds 533.2m the previous year.

The regional companies, which differ on how much of NGC should be floated, have appointed Kleinwort Benson to advise on its sale potential. The company is thought to be worth at least pounds 4bn.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in