London, Feb 4, 2026, 08:53 GMT — Regular session
- National Grid shares inched up roughly 0.6% during early trading in London
- UK transmission unit unveiled final terms for a €650 million green bond
- Investors remain focused on Ofgem’s forthcoming decisions regarding network licence changes
National Grid shares ticked up in early London trading Wednesday, buoyed by a stronger market and news from its UK electricity transmission arm. The unit unveiled final terms for a euro-denominated green bond. The stock gained roughly 0.6% to 1,264 pence, up from Tuesday’s close of 1,256 pence.
The shift is modest, yet it comes during a week when investors refocus on funding costs for regulated utilities. National Grid’s extensive grid expansion projects in Britain and the northeastern U.S. usually make their presence felt in debt markets.
National Grid Electricity Transmission plc has released final terms for a EUR 650 million senior green bond, carrying a 3.563% coupon and maturing on Feb. 3, 2034. The issuance falls under the group’s €20 billion medium-term note programme and has received approval from Britain’s Financial Conduct Authority.
Green bonds are straightforward debt instruments, but with a catch: the funds raised must go toward projects that fit specific environmental standards. In the utilities sector, that typically involves upgrading grids to support renewables and electrification efforts.
Regulation also remains in flux. This week, Britain’s energy watchdog Ofgem launched a consultation on RIIO-2 re-opener licence changes, with a deadline for responses set for March 2.
This matters because the regulator, not daily demand swings, largely sets allowed returns and incentives. It also means the stock can move on minor tweaks to the expected rules, even if operational updates are scarce.
National Grid’s stock got a boost as the FTSE 100 climbed roughly 0.6% around the same time. The company, part of a defensive segment of the index, tends to attract buyers when investors turn cautious.
The risk on the downside remains clear. Should rates climb once more or the regulator adopt a tougher stance that cuts cash returns beyond what investors anticipate, utilities could swiftly lose their appeal as a “bond proxy.”
Ofgem’s call on the licence changes is set for February, with National Grid planning to respond in early March, the company noted.
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