National Grid issues bonds

POWER infrastructure provider National Grid became the first company ever to launch a retail bond linked to the UK inflation rate yesterday.

National Grid is issuing the ten-year sterling bonds, linked to the retail price index measure of inflation, to raise £22bn for capital investment to modernise the UK’s power transmission network until 2015.

The company is seeking to attract investors keen to insulate themselves from the corrosive effects of sustained high inflation rates.