Perth-based energy giant SSE plc said late on Tuesday it successfully launched a €1.1 billion “5 and 10 year dual tranche” Euro bond with €600 million maturing in April 2025 and €500 million maturing in April 2030.

SSE finance director Gregor Alexander said: “In the past few weeks capital markets have been disrupted and extremely volatile due to Covid-19, resulting in SSE choosing to adapt its funding plans for 20/21. 

“With bond markets recovering recently we have taken this window of opportunity to issue SSE’s first dual tranche senior Euro bond.

“With Sterling equivalent proceeds of around £975m this issuance will significantly help cover our refinancing and funding requirements for the remainder of the year, as we continue our low carbon investment programme.” 

The bonds carry coupons of 1.25% and 1.75% respectively.

“Both tranches have been swapped to Sterling resulting in a funding cost of 2.4 per cent for the 5 year and 2.9 per cent for the 10 year,” said SSE.

“Due to the strength of Sterling in the last week of March, net debt and hybrid capital is now expected to be around £10.5 billion as at 31 March 2020, down from £10.7 billion as  stated in SSE’s last financial update published on 27 March 2020.”