The ESB has negotiated a funding deal of over $1 billion with investors in the US.
It has also secured an additional €500m from a consortium of banks. The company says the money will be used to upgrade its network.
ESB chairman, Tadhg O'Donoghue, said the company will be going to the market again next year to seek more funding and is in negotiations with the Government to review its debt ceiling of just over €2 billion. No Government guarantee was needed for or sought for the present placement.
The company is also considering adopting a formal credit rating. O'Donoghue said he had no concerns about the ESB taking on this scale of debt. The ESB, he said, was 'financially, a conservative company.'
Last month the National Grid warned in its annual report that the reliability of existing electricity generating facilities was at its lowest for a decade. It warned that if the situation did not improved the threat of power failures would continue.
Today's deal announced by the ESB will allow a massive amount of money to be invested in the upgrading of its network. The company has raised just over $1 billion or almost €800m in a private placement finalised last night. It has also raised an additional €500m credit facility with a consortium of banks.
The ESB says the money will be used to fund its refurbishment programme which it is costing €3m a day.
Later this afternoon the ESB's broadband division is expected to announce that it has drastically cut the wholesale rates on its network.
*** The placement is split into tranches of 7, 10, 12, 15 and 20 year debt notes. On average the debt is priced at 5%. Two thirds of the debt is denominated in 10 and 12 year notes. There are over 20 investors in the private placement which was oversubscribed.
