7 for 24 fully underwritten Rights Issue to raise c.£7.0 billion
New 5-year investment framework for FY25-29
Deliver £60bn investment in energy infrastructure
HIGHLIGHTS
• National Grid announces capital investment of around £60 billion over the next 5 years (FY25 to FY29), nearly double the previous 5-year period, to deliver a significant step-change in critical energy infrastructure in the UK and US in support of the energy transition and economic growth objectives
• As part of a comprehensive financing plan to deliver the investment, National Grid is announcing a 7 for 24 fully underwritten Rights Issue to raise net proceeds of approximately £6.8 Billion
• National Grid’s comprehensive financing plan comprises:
o A c.£7.0 billion Rights Issue which provides shareholders with the pre-emptive opportunity to fund and benefit from our higher growth strategy;
▪ the Issue Price of 645 pence per New Share represents a 34.7% discount to the theoretical ex-rights price based on the closing middle-market price on 22 May 2024 (being the last business day before the announcement of the terms of the Rights Issue) of 1,127.5 pence per Share, adjusted for the recommended final dividend for FY24 of 39.12 pence per Share
o streamlining of the portfolio to focus on pureplay networks across regulated and competitive, onshore and offshore networks, with the intention to sell Grain LNG and National Grid Renewables; and
o senior debt and future hybrid issuance to maintain balance sheet strength and investment flexibility
• The Board unanimously believes this comprehensive financing plan will allow the Group to funda significant increase in capital investment, maintain its strong investment grade credit rating, deliver for customers, and continue to achieve attractive shareholders returns
• Alongside this, National Grid is announcing a new 5-year financial framework from FY25 to FY29, which will see it deliver:
o Group asset growth of c.10% CAGR;
o 6-8% underlying EPS CAGR from an FY25 baseline; and
o continuing our progressive dividend policy, maintaining the total level of dividend following the Rights Issue. Aim to continue to grow the DPS in line with UK CPIH, from a rebased FY24 DPS level
• Overall, this makes National Grid one of the FTSE’s biggest investors in the delivery of the energy transition, and positions the Company to become a pre-eminent pureplay networks
business
INDICATIVE SUMMARY TIMETABLE OF PRINCIPAL EVENTSEvent | Date
Announcement of Rights Issue | 23-May-24
Publication of the Prospectus | 23-May-24
Record date for entitlement under the Rights Issue at 6:00 p.m. | 20-May-24
Despatch of Provisional Allotment Letters | 23-May-24
Admission and commencement of dealings in New Shares, nil paid | 24-May-24
Existing Shares marked “ex-rights” by the London Stock Exchange | 24-May-24
Acceptance, payment in full and registration by 11:00 a.m. | 10-Jun-24
Announcement of results of the Rights Issue | 12-Jun-24
Commencement of dealings in New Shares at 8.00 a.m. | 12-Jun-24
Enjoy!
Ian