National Grid Transco, the international energy delivery business, has converted a recently issued five-year EUR500m (USD561 million) bond into a floating-rate dollar liability. Malcolm Cooper, treasurer, said, "This bond is to help finance our U.S. business." The entire bond will be hedged and the swap's maturity will match that of the bond.
In the swap, Transco receives a fixed rate in euros and pays floating dollars. Although Cooper declined to specify counterparties to the deal, he said the company chooses swap counterparties on the basis of price and relationship.
