Investors snap up National Grid new shares

MIDLANDS-based utility National Grid has announced that more than 94% of its latest share placing has been snapped up by investors.

The placing is designed to raise around £3.2bn to fund future investment.

The additional financing will also protect the company’s single A credit ratings for its UK operating companies and strengthen its long-term competitive position.

The Warwickshire group is forecast to invest around £22bn over the next five years.

Trading in the new shares is expected to begin straight away.

In a statement, the company said: “The board of National Grid believes the proceeds from the rights issue will allow the group to fund a significant increase in UK capital investment and continue to deliver attractive returns to shareholders, whilst maintaining single A credit ratings for our UK operating companies in a more volatile economic environment.”