Gas Networks Ireland bonds raise €625m

Gas Networks Ireland (GNI)

Michael Cogley

Gas Networks Ireland (GNI) has raised €625m through two bond issuances, which will fund maintenance and upgrades to the country's infrastructure.

The two types of bonds issued run for 10 and 20 years with interest rates of 1.375pc and 2.25pc respectively.

The State-owned body reported very strong demand from high-calibre investors for the bonds.

GNI, which is a unit of Irish Water owner Ervia, raised €500m through the issuance of notes due on December 5, 2026 with the remaining €125m attached to notes due in 2036.

Ervia finance director Cathal Marley was delighted by the demand for the company's bonds.

"This allows Ervia to refinance existing debt at significantly lower interest rates. The funds raised will support our continuing investment programme and ensure Ireland retains a high-quality and safe gas network infrastructure, a key part of our transition to a low carbon economy," Mr Marley said.

The capital raise comes after GNI received a boost from ratings agency Moody's, which upgraded the company to A3.

Moody's boosted Ervia's gas unit in August saying it expected a "sound operating performance" in the coming years.

GNI owns and operates the natural gas network, which stretches over 13,800km of pipeline, and connects all customers to it.