Press releases 2011

57/11
6 October 2011
National Grid Bond Begins Trading on Order Book for Retail Bonds

-   Issue raises a record £260m
-   First retail targeted inflation-linked corporate bond on ORB

The London Stock Exchange today welcomes the latest listing of a new bond on its Order book for Retail Bonds (ORB). National Grid, the electricity and gas company, has raised a record £260 million from private investors. Barclays Capital and Evolution Securities acted as joint book runners on the deal, with Barclays Capital now confirmed as a new dedicated market maker on ORB.

The transaction is the first retail targeted RPI-linked sterling corporate bond on ORB and has become the largest UK retail bond raised on the platform to date. It is also the most widely distributed with over 10,000 individual investors and 80 intermediaries.

The recent migration of ORB to the Millennium Exchange platform has provided enhanced flexibility and functionality for trading participants. Following its launch in 2010, ORB, has raised over £1.25billion, with 151 bonds now available for trading on the platform.

Pietro Poletto, Head of Fixed Income at London Stock Exchange Group, said:

"The listing of National Grid will give private investors simple, transparent access to the first inflation-linked corporate bond on ORB. The amount that has been raised with this bond highlights the strength of private investor appetite for this kind of issuance in the UK. Since its introduction ORB has already seen promising growth and we are delighted to have reached the £1.25 billion raised mark with National Grid today".

Government Energy Minister, Charles Hendry MP, said:

"The move to a low-carbon electricity system in Britain is a huge investment challenge but one which is vital to ensuring we have secure and affordable energy in the future.

The Government is already addressing this issue head-on through its essential reforms to the electricity market.　

"Innovative sources of financing, such as National Grid’s retail bond on the London Stock Exchange, show that the private sector is rising to the challenge and will help secure the investment we need to keep the lights on, creating new jobs in the process."

Malcolm Cooper, Global Tax and Treasury Director at National Grid, said:

"This has clearly exceeded our expectations and we are extremely pleased about the total amount raised. This shows that there is demand for inflation linked products from a business such as National Grid."

ORB was launched in February 2010 in response to strong private investor demand for greater access to fixed income. 　 There are corporate, government and supranational bonds available, which are tradable in typical denominations of £1,000 or less. All are exempt from stamp duty and those maturing in five years or more are eligible for inclusion in ISAs and SIPPs. Full prospectus details and final terms for each security are available on the London Stock Exchange's website.

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For further information, please contact:

Ed Clark Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com　

Notes to editors:

About the Order book for Retail Bonds (ORB):

The Order Book for Retail Bonds (ORB) is the London Stock Exchange’s electronic platform for private investors trading fixed income securities. The ORB offers continuous, transparent, two-way tradable prices in around 150 individual UK gilts, supranational and corporate bonds, all tradable in typical denominations of £1,000 or less. Introduced in February 2010 in response to strong demand from private investors, it offers issuers a high profile route to raise debt capital from a retail audience.

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) sits at the heart of the world’s financial community. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise,　offering pan-European and US lit and dark equity trading. Through its markets, the Group offers international business unrivalled access to Europe’s capital markets.

The Group is a leading developer of high performance trading platforms and capital markets software and also offers its customers around the world an extensive range of real-time and reference data products and market-leading post-trade services.　

Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs　around 1500 people. Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com.