Corporate risk manager of the year: Electricity Supply Board of Ireland
Break clauses in long-dated swaps have become a source of pain for many UK utilities. Syndication of the risk is one way to fix them, but had previously only been tried via a complex repackaging of the trades
When the Electricity Supply Board of Ireland (ESB) purchased Northern Ireland Electricity (NIE) in December 2010, payment didn't end with the €1.2 billion price tag. The acquisition brought with it €272 million of inflation swaps linked to the UK retail prices index (RPI) – and a problem many utilities in the UK have been trying to fix in recent years.
The swaps all contained mandatory breaks, giving dealers the periodic right to alter or terminate the trade, which is often exercised – or at
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