SSE issues second green bond to fund renewable sector
SSE has issued a second green bond worth €650m, confirming the big six supplier as the largest issuer of green bonds from the UK corporate sector.
The nine-year bond, which will be used to fund renewable energy, will mature in September 2025 with a coupon of 1.375%.
Proceeds will be swapped to sterling and the all-in funding cost is expected to be around 2.6 per cent.
The money will be used to help in the transition towards a low-carbon future.
Gregor Alexander, finance director at SSE, said: “In line with our innovative approach to financing investment and as a major investor in the UK and Ireland’s renewable energy infrastructure, we are pleased that this second green bond continues to show SSE’s focus on sustainability and responsibility principles.
“This funding is consistent with our commitment to maintain a strong balance sheet and strong market rating and has been secured at very attractive pricing.”
The first green bond, worth €600m, was issued last year and at the time was the largest such bond ever issued in the UK.
SSE said it was able to set its lowest ever coupon rate for a senior bond at 0.875% due to “significant demand” for the eight-year security.
This article first appeared on edie sister title’s website, Utility Week
© Faversham House Ltd 2023 edie news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.