SSEN Transmission, the 75%-owned subsidiary of Perth-based electricity infrastructure giant SSE plc, said it successfully launched its debut issuance in the Euro bond market with a €850 million 8-year green bond maturing on September 4, 2032, at a fixed coupon of 3.375%.
SSE said the bond — which was over three times oversubscribed — has been swapped to Sterling, giving an all-in funding cost of 4.95%.
SSE, a FTSE 100 firm, is the biggest listed company run from Scotland, with a stock market value of more than £20 billion.
“Today’s issuance is SSE’s eighth green bond in seven years and reaffirms its status as the largest UK corporate issuer of green bonds,” said SSE.
“This brings the total outstanding green bonds issued by SSE and its subsidiaries to £4.4bn, of which £2.0bn has been issued directly by SSEN Transmission.
“The proceeds from today’s green bond will specifically help finance and/or refinance critical national infrastructure projects within SSEN Transmission, with the business benefiting from strong visibility over future growth through Ofgem’s Large Onshore Transmission Investments (LOTI) re-opener and the Accelerated Strategic Transmission Investment (ASTI) framework.
“With increasing visibility over the investment in LOTI and ASTI projects, SSEN Transmission is expected to invest around £10.0bn (SSE plc share around £7.5bn) in the regulated electricity transmission network across the five years to 2026/27.
“This investment is expected to comprise almost 40% of SSE plc’s £20.5bn Net Zero Acceleration Programme Plus (NZAP Plus) investment in the vital electricity infrastructure needed for the transition to net zero.”
Scottish Hydro Electric Transmission plc (SHET), trading name SSEN Transmission, is responsible for maintaining and investing in the high voltage electricity networks in the north of Scotland. SSEN Transmission is 25% owned by Ontario Teachers’ Pension Plan Board.
SSE chief financial officer Barry O’Regan said: “SSE is at the heart of the clean energy transition investing in high-quality assets right across the Group.
“Our transmission business is growing strongly, delivering nationally important investments, which will make a significant impact as the UK seeks to meet renewables deployment and climate targets.
“SSEN Transmission’s projects are mission-critical to these efforts and this bond offers an attractive proposition to investors looking to channel finance into green infrastructure.
“Today’s debut issuance for SSEN Transmission in the Euro bond market has been extremely well received and was over three times oversubscribed.
“This new issuance will add to our growing green bond portfolio and is consistent with our commitment to maintaining a strong balance sheet through financial discipline whilst delivering £20.5bn of investment under our NZAP Plus.”