Bord Gais plans bond issue to raise €500m

INVESTMENT: Bord Gáis plans to raise up to €500 million in a bond issue later this year, its chief executive said yesterday. Mr Gerry Walsh said the money would be used to part-fund the State gas company's €1.4 billion capital investment programme.

Reporting a 16 per cent increase in pre-tax profits last year to €89 million, the company said its revenues grew 15 per cent to €571 million. It paid a €23 million dividend to the Exchequer, down from €27 million in 2000.

Mr Walsh said the company would seek a credit rating soon for the purposes of issuing its bond. He did not anticipate that further loans would be raised to fund its capital projects.

He would not comment when asked whether the incoming government would be likely to seek to sell Bord Gáis. The option has been mooted by the Progressive Democrats, Fianna Fáil's most likely coalition partner, and is favoured by senior figures in the company.