SSEN Transmission in £350m private placement

SSE subsidiary SSEN Transmission announced it agreed terms for a £350 million private placement with Pricoa Private Capital, part of PGIM, Inc. and one of the largest global investors in private debt.

This private placement follows the £850 million of green bonds issued by SSEN Transmission since 2019.

SSEN Transmission, operating under licence held by Scottish Hydro Electric (SHE) Transmission plc, owns, operates and develops the high voltage electricity transmission system in the north of Scotland.

“The private placement has been benchmarked against public bond rates and will be issued in two tranches: a £175m, 10-year note at a rate of 3.13 per cent and a £175m, 15-year note at a rate of 3.24 per cent,” said SSEN Transmission.

“Terms agreed include a 3-month delayed draw, with proceeds to be received in June 2022.

“The agreed terms are subject to final documentation, which is expected to be completed over the next few weeks.

“The proceeds are earmarked to fund part of SSEN Transmission’s programme of critical investments in transmission network infrastructure that will help accommodate the significant increase in renewables required to bolster the UK’s energy security and achieve the transition to net zero emissions, as well as cover existing maturing debt.

“These investments will be essential in enabling delivery of the UK Government’s ambition for enough offshore wind to power every home with renewable energy by 2030.

“Transmission infrastructure investments form a core part of SSE’s fully-funded, £12.5bn Net Zero Acceleration Programme to 2026, set out in November.”

SSE plc finance director Gregor Alexander said: “As we execute our Net Zero Acceleration Programme at pace, we’re investing billions into building the electricity transmission infrastructure needed to deliver on the UK’s energy security and net zero aspirations.

“This placement is on attractive terms and demonstrates the diversification of funding options available to the Transmission business as we deliver this growth.

“It is consistent with our commitment to maintain a strong balance sheet and investment grade credit rating as we deliver our fully funded plans.” 

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