Ok is there a mutter from the gutter going about today or what?
Shares are now consolidated, payout deadline gone, no official
news......??????

(scratches head......)

Any clues among us beautiful BB'ers this afternoon?

Holding up well and blue!

Amazingly only 9 short of the 12 month high of 639.

RNS Number : 1530O

National Grid PLC

13 September 2011

13 September 2011

The information contained herein may only be released, published or distributed in the United Kingdom,

Jersey and Guernsey. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this press release. The bonds may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958.

NATIONAL GRID LAUNCHES RPI LINKED 10 YEAR STERLING RETAIL BOND

National Grid has today launched a 10 year RPI linked Sterling bond available to retail investors.

The bonds will pay interest semi-annually at a 1.25% annual gross rate of interest adjusted to take account of changes in the level of the Retail Price Index*. On maturity, the amount due to be paid will be the full face value of the bonds adjusted to take account of any overall increase in the RPI. However on maturity, even if the RPI has fallen, National Grid will be required to repay the bonds at no less than their full face value.

National Grid is the first company to issue an RPI-linked bond available to retail investors, having traditionally only offered such bonds to major institutional investors. National Grid has a capital investment programme of approximately GBP22bn for the period from 2010 to 2015 for which it requires funding.

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

"National Grid is a relatively low risk business due to the demand for what we do and our highly regulated nature. There is evidence of strong demand from retail investors for inflation linked products to protect them from certain effects of inflation, and we hope that this product will address some of that demand".

Barclays Capital and Evolution Securities Limited have been appointed Joint Lead Managers of the bond issue. The bonds are expected to be issued on 6 October 2011. The offer period for the bonds is expected to remain open until 29 September 2011 but may close earlier.

The bonds are being issued by National Grid plc pursuant to its EUR15,000,000,000 EMTN programme and are expected to be listed on the London Stock Exchange (LSE) and to trade on the LSE's Order book for Retail Bonds.

* Inflation adjustments will be calculated by comparing the RPI level relating to the month which is 8 months before each payment is due to be made with the RPI level relating to the month which was 8 months before the October 2011 issue date, i.e. February 2011. For more information please read the Information Booklet, Prospectus and Final Terms relating to the bonds.

--ENDS--

A strong finish today.

Nice one

I love these boring shares - 639 is the 12 month high.

National Grid Index-Linked 2021
National Grid PLC has launched the first index-linked bond in the resurgent Sterling retail bond markets, which distributes gas and electricity in the UK and operates utilities in the USA.

The company plans to raise around 100 to 200 million from the new security, offering a new retail-targeted 10-year bond with both the coupon and the redemption proceeds linked to the RPI.

Mark Glowrey, analyst and director at Stockcube Research comments:

Structurally, the NG issue mirrors the "old style" index-linked gilts. The bond is issued at par with a 1.25% coupon. This coupon will be adjusted by the RPI going forward (on an 8-month lagging basis). Thus, if over the next five years the RPI increases by 20%, the coupon will creep up to 1.5%. Perhaps more importantly, the value of the principle is also protected by the RPI linkage. If the RPI increases by 40% over the ten-year period of the bond, holders will receive back 140p in the pound on the bond's maturity in 2021. However, the converse is also true if the RPI decreases, the coupon and the value of the principle will also decrease.

Nice one NG

Harry - check post 98.

Gotcha..... failed to see that. Will sit on the naughty step for an hour.

Not sure the new bond is such a good idea for retail investors, unless they have stacks of dosh and are prepared to lock up cash for a long period. I suppose premiership footballers and the like are better targets than us mortals.

12 month high just gone.

NG. v UKX

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Sorry - UKX - now annotated.

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Chart wise 660 looks achievable.

Easy peasy skinny, 700 before end of the year.

That will be 650 then - I love boring shares :-)

You should buy Tesco then.

Bernard - I have them - albeit from north of the current price.

You would have made more money putting the cash in the post office.