ESB raises €500m on bond markets to fund capital investment plan

12 Nov 2012

The ESB has raised €500m by selling a seven year bond and will repay investors 4.37pc. Ireland’s incumbent electricity provider said it will use the funding to support its capital investment programme in Ireland, which includes investments in the networks and renewable energy generation.

It said that the proceeds from the bond will also be used to refinance some of the ESB’s existing debt.

The funding will also enable the ESB to attract international capital for infrastructure investment in Ireland.

The bond follows ESB’s success in raising of €600m from a five-year bond in September.

It said the lower yield of the latest deal reflects improved market sentiment towards the ESB and Irish bonds in general.

The electricity provider has a target of achieving €280m in annual cost reductions between 2010 and 2015 – equal to reducing costs by 25pc, excluding fuel.

It is understood that the ESB has reduced staff numbers from 7,836 down to 6,827.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years