Centrica Bond Issue

Centrica PLC
16 October 2001



Centrica Launches Debut Bond Issue

Centrica plc has today launched its debut bond issue.  The transaction is a £400
million Eurosterling bond with a maturity of 2012 and it has been launched as 
the inaugural issue under the terms of Centrica's US $2 billion Euro Medium Term
Note programme which was signed on 7th September 2001.  The coupon on the bonds 
has been fixed at 5.875% per annum with an issue price of 98.593% giving an all-
in cost of funds of around 6% per annum.

The joint lead managers and joint bookrunners of the issue were HSBC and The 
Royal Bank of Scotland with Barclays, J.P. Morgan and Cazenove acting as co-lead
managers.  The issue was increased from the initial proposed size of £300 
million to meet additional investor demand and the bonds have been placed with a
wide range of institutional bond investors.

Phil Bentley, Finance Director of Centrica commented:
'This is a very significant transaction for Centrica and I am delighted that we 
have now inaugurated our Euro MTM programme by establishing a benchmark issue in
the Eurobond market.  Given the scale of Centrica and having established long 
term credit ratings of A / A2, it has been our intention for some time to 
broaden our source of debt capital by establishing a presence in the 
international bond markets.  It is also very pleasing to see that there has been
such widespread and strong support for Centrica reflecting the confidence of 
bond investors in our business and strategy.'


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