Electricity North West implementing innovative new hedging arrangements
Centrus provided support and financial advice to ENW with the execution of £100m of new index-linked interest rate swaps to support the company’s strategy to optimise its liability profile. The structure was based on a bifurcation into on-balance sheet and institutional swaps, without any mandatory breaks.
Centrus supported the company with:
- The evaluation of potential swap solutions, including both onbalance sheet and bifurcated structures,
- Counterparty risk analysis under different scenarios including within the context of the existing portfolio
- Management of swap execution strategy
- Support with the institutional solution investor approach
Geoff Knight, Managing Director Centrus This is the third time ENW have been able to successfully employ this bifurcated structure, demonstrating the continued accessibility of the investor pool in this specialist market. In contrast to previous transactions which have been predicated on removal of mandatory breaks on existing swaps, this is the first time this structure has been used to execute a new swap with no mandatory break clauses in the market