National Grid PLC — Capital/Financing Update 2021

Jan 20, 2021

Final Terms dated 18 January 2021

NATIONAL GRID PLC

Legal Entity Identifier (LEI): 8R95QZMKZLJX5Q2XR704 Issue of €500,000,000 0.163 per cent. Instruments due 20 January 2028 under the Euro 15,000,000,000 Euro Medium Term Note Programme

PART A – CONTRACTUAL TERMS

PROHIBITION OF SALES TO EEA RETAIL INVESTORS – The Instruments are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area ("EEA"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, "MiFID II"); (ii) a customer within the meaning of Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in Regulation (EU) 2017/1129 (the "Prospectus Regulation"). Consequently no key information document required by Regulation (EU) No 1286/2014 (as amended, the "PRIIPs Regulation") for offering or selling the Instruments or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Instruments or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.

PROHIBITION OF SALES TO UK RETAIL INVESTORS – The Instruments are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom ("UK"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA"); (ii) a customer within the meaning of the provisions of the FSMA and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a qualified investor as defined in Article 2 of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the EUWA. Consequently no key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the EUWA (the "UK PRIIPs Regulation") for offering or selling the Instruments or otherwise making them available to retail investors in the UK has been prepared and therefore offering or selling the Instruments or otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPs Regulation.

UK MiFIR product governance / Professional investors and ECPs only target market – Solely for the purposes of each manufacturer's product approval process, the target market assessment in respect of the Instruments has led to the conclusion that: (i) the target market for the Instruments is only eligible counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook ("COBS"), and professional clients, as defined in Regulation (EU) No 600/2014 as it forms part of UK domestic law by virtue of the EUWA ("UK MiFIR"); and (ii) all channels for distribution of the Instruments to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Instruments (a "distributor") should take into consideration the manufacturers' target market assessment; however, a distributor subject to the FCA Handbook Product Intervention and Product Governance Sourcebook (the "UK MiFIR Product Governance Rules") is responsible for undertaking its own target market assessment in respect of the Instruments (by either adopting or refining the manufacturers' target market assessment) and determining appropriate distribution channels.

Terms used herein shall be deemed to be defined as such for the purposes of the Conditions set forth in the Prospectus dated 7 August 2020 which together with the supplementary Prospectus dated 9 September 2020, the supplementary Prospectus dated 12 November 2020 and the supplementary Prospectus dated 16 December 2020 constitute a base prospectus for the purposes of Regulation (EU) 2017/1129 as it forms part of United Kingdom domestic law by virtue of the EUWA (the "UK Prospectus Regulation"). This document constitutes the Final Terms of the Instruments described herein for the purposes of the UK Prospectus Regulation and must be read in conjunction with such Prospectus as so supplemented. Full information on the Issuer and the offer of the Instruments is only available on the basis of the combination of these Final Terms and the Prospectus as so supplemented. The Prospectus and the supplementary Prospectuses are available for viewing at, and copies may be obtained from, the registered address of the Issuer at 1-3 Strand, London WC2N 5EH and the office of the Issuing and Paying Agent at One Canada Square, London E14 5AL and have been published on the website of Regulatory News Services operated by the London Stock Exchange at www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

1	Issuer:	National Grid plc
2	(i) Series Number:	90
	(ii) Tranche Number:	1
3	Specified Currency or Currencies:	Euro ("€")
4	Aggregate Nominal Amount:
	(i) Series:	€500,000,000
	(ii) Tranche:	€500,000,000
5	Issue Price:	100.00 per cent. of the Aggregate Nominal Amount
6	Specified Denominations:	€100,000 and integral multiples of €1,000 in excess thereof up to and including €199,000. No Instruments in definitive form will be issued with a denomination above €199,000.
7	Calculation Amount:	€1,000
8	(i) Issue Date:	20 January 2021
	(ii) Interest Commencement Date:	Issue Date
9	Maturity Date:	20 January 2028
10	Interest Basis:	0.163 per cent. Fixed Rate (see paragraph 15 below)
11	Redemption/Payment Basis:	Subject to any purchase and cancellation or early redemption, the Instruments will be redeemed on the Maturity Date at 100 per cent. of their nominal amount
12	Change of Interest or Redemption/Payment Basis:	Not Applicable
13	Put/Call Options:	Issuer Call
		Make-whole
		(see paragraphs 20 and 21 below)
14	Date Board approval for issuance of Instruments obtained:	Not Applicable

PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

15	Fixed Rate Instrument Provisions		Applicable
	(i)	Rate of Interest:	0.163 per cent. per annum payable annually in arrear
	(ii)	Interest Payment Date(s):	20 January in each year, commencing on 20 January 2022
	(iii)	Fixed Coupon Amount:	€1.63 per Calculation Amount
		(iv) Broken Amount(s):	Not Applicable
	(v)	Day Count Fraction (Condition 3.8):	Actual/Actual (ICMA)
		(vi) Determination Dates (Condition 3.8):	20 January in each year
16	Floating Rate Instrument Provisions		Not Applicable
17	Zero Coupon Instrument Provisions		Not Applicable
18		Index Linked Interest Instrument	Not Applicable
		PROVISIONS RELATING TO REDEMPTION
19	Residual Holding Call Option		Not Applicable
20	Call Option		Applicable
	(i)	Optional Redemption Date(s):	On or after 20 October 2027
	(ii)	Optional Redemption Amount(s) of each Instrument:	€1,000 per Calculation Amount
	(iii) If redeemable in part:
		(a) Minimum nominal amount to be redeemed:	€100,000
		(b) Maximum nominal amount to be redeemed:	Not Applicable
	(iv)	Option Exercise Date(s):	Not Applicable
	(v)	Notice periods (Condition 5.5.2):	Minimum Period: 15 days Maximum Period: 30 days
21	Make-whole Redemption Option		Applicable
	(i) Make-whole Redemption Date(s):		At any time prior to 20 October 2027
		(a) Reference Bond:	DBR 0.000% due 15 November 2027

		(b)	Quotation Time:	11:00am (CET)
		(c)	Redemption Margin:	0.15 per cent.
		(d)	Determination Date:	The third Business Day prior to the applicable Make-whole Redemption Date
	(ii)		If redeemable in part:
		(a)	Minimum nominal amount to be redeemed:	€100,000
		(b)	Maximum nominal amount to be redeemed:	Not Applicable
	(iii)	5.5.3):	Notice periods (Condition	Minimum Period: 15 days Maximum Period: 30 days
22		Put Option		Not Applicable
23		NGET Restructuring Put Option		Not Applicable
24		Final Redemption Amount of each Instrument		€1,000 per Calculation Amount
25			Early Redemption Amount
	(i)		Early Redemption Amount(s) of each Instrument payable on redemption for taxation reasons (Condition 5.2) or on Event of Default (Condition 9) or other early redemption:	€1,000 per Calculation Amount
	(ii)		Redemption for taxation reasons permitted on days other than Interest Payment Dates (Condition 5.2)	Yes
	(iii)	5.2):	Notice Periods (Condition	Minimum Period: 30 days Maximum Period: 45 days
				GENERAL PROVISIONS APPLICABLE TO THE INSTRUMENTS
26	Form of Instruments			Bearer Instruments:
				temporary Global Instrument exchangeable for a permanent Global Instrument which is exchangeable for Definitive Instruments in the limited circumstances specified in the permanent Global Instrument
27			New Global Note:	Yes
28			Financial Centre(s) or other special provisions relating to	London

Payment Dates (Condition 6.7):

29 Eligible Bonds: No

THIRD PARTY INFORMATION

The description of the meaning of the ratings in paragraph 2 of Part B of these Final Terms has been extracted from the website of S&P, Moody's and Fitch (as applicable). The Issuer confirms that such information has been accurately reproduced and that, so far as it is aware and is able to ascertain from information published by S&P, Moody's and Fitch (as applicable), no facts have been omitted which would render the reproduced information inaccurate or misleading.

Signed on behalf of the Issuer:

By: ............................................

Duly authorised

PART B – OTHER INFORMATION

1 LISTING AND TRADING

to admission to

trading:

(i)	Listing:	London
(ii)	Admission to trading:	Application has been made by the Issuer (or on its behalf) for the Instruments to be admitted to trading on the London Stock Exchange's regulated market with effect from 20 January 2021.
(iii)	Estimate of total expenses related	£4,840

2 RATINGS

Ratings: The Instruments to be issued are expected to be rated:

S&P: BBB+

An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to weaken the obligor's capacity to meet its financial commitments on the obligation. The plus (+) sign shows relative standing within the rating categories. (Source: S&P, https://www.standardandpoors.com/en_US/web/guest/article/- /view/sourceId/504352)

Moody's: Baa1

Obligations rated 'Baa' are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics. The modifier '1' indicates that the obligation ranks in the higher end of its generic rating category. (Source: Moody's,

https://www.moodys.com/Pages/amr002002.aspx)

Fitch: BBB+

'BBB' ratings indicate that expectations of credit risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity. The modifier "+" is appended to a rating to denote relative status within the rating category. (Source: Fitch,

https://www.fitchratings.com/products/rating-definitions)

3 INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE

Save for any fees payable to the Managers, so far as the Issuer is aware, no person involved in the offer of the Instruments has an interest material to the offer.

4 REASONS FOR THE OFFER AND ESTIMATED NET PROCEEDS

• (i) Reasons for the offer and use of proceeds: General corporate purposes
• (ii) Estimated net proceeds: €498,900,000

5 YIELD

	Indication of yield:	Calculated as 0.163 per cent. on the Issue Date
		The yield is calculated on the Issue Date on the basis of the Issue Price. It is not an indication of future yield.
6	OPERATIONAL INFORMATION
	ISIN:	XS2289408440
	Common Code:	228940844
	CFI:	As set out on the website of the Association of National Numbering Agencies or alternatively sourced from the responsible National Numbering Agency that assigned the ISIN
	FISN:	As set out on the website of the Association of National Numbering Agencies or alternatively sourced from the responsible National Numbering Agency that assigned the ISIN
	Any clearing system(s) other than Euroclear Bank SA/NV and Clearstream Banking S.A. and the relevant identification number(s):	Not Applicable
	Delivery:	Delivery against payment
	Names and addresses of additional Paying Agent(s) (if any):	Not Applicable
	Intended to be held in a manner which would allow Eurosystem eligibility:	Yes. Note that the designation "yes" simply means that the Instruments are intended upon issue to be deposited with one of the ICSDs as common safekeeper and does not necessarily mean that the Instruments will be recognised as eligible collateral for Eurosystem monetary policy and intra day credit operations by the Eurosystem either upon issue or at any or all times during their life. Such recognition will depend upon the ECB being satisfied that Eurosystem eligibility criteria have been met.
	Process Agent:	Not Applicable
	The aggregate principal amount of the Instruments issued has been translated into Euro at the rate of [●], producing a sum of (for Instruments not denominated in Euro):	Not Applicable
	Benchmarks Regulation:	Not Applicable

7 DISTRIBUTION

(i)	U.S. Selling Restrictions:	Reg. S Compliance Category 2; TEFRA D
(ii)	(a) Prohibition of Sales to EEA Retail Investors:	Applicable
	(b) Prohibition of Sales to UK Retail Investors:	Applicable
(iii)	Prohibition of Sales to Belgian Consumers:	Applicable
	(iv) Method of distribution:	Syndicated
(v)	If syndicated, names of Managers:	Joint Bookrunners: BNP Paribas Citigroup Global Markets Limited Credit Suisse Securities (Europe) Limited
		Co-Managers: Bank of China Limited, London Branch Lloyds Bank Corporate Markets plc SMBC Nikko Capital Markets Limited
	(vi) Stabilisation Manager(s) (if any):	BNP Paribas
(vii) If	non syndicated, name of Dealer:	Not Applicable
	(viii) Additional selling restrictions:	Not Applicable