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Centrus advises Electricity North West on successful £100m index-linked swap

Electricity North West Limited (“ENW”), the owner and operator of the North West’s electricity distribution network, connecting more than 5 million people in the region to the National Grid, recently completed the execution of £100m of new index-linked interest rate swaps. The structure was based on a bifurcation into on-balance sheet and institutional swaps, without any mandatory breaks.

Centrus provided support and financial advice to ENW covering

  • The evaluation of potential swap solutions, including both on-balance 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
Partner Geoff Knight, who led the Centrus team working on the transaction commented 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