REG - SSE Plc - Issuance of Green Bond

SSEAnnouncement

28/08/2024 17:15

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RNS Number : 0528C  SSE PLC  28 August 2024

SSE PLC

SSEN TRANSMISSION ISSUES NEW €850m GREEN BOND

SSEN Transmission, the 75%-owned subsidiary of SSE plc, has successfully
launched its debut issuance in the Euro bond market with a €850m 8-year
green bond maturing on 4 September 2032 at a fixed coupon of 3.375%, which has
been swapped to Sterling giving an all-in funding cost of 4.95%.

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. 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.

Barry O'Regan, SSE's Chief Financial Officer, 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."

 

Notes

SSE's latest published Green Bond Report can be found at
https://www.sse.com/sustainabilityfinancingframework
(https://www.sse.com/sustainabilityfinancingframework) , along with an
Assurance Report from EY and DNV's Opinion Report on our Sustainability
Financing Framework.

 

Scottish Hydro Electric Transmission plc (SHET), trading name SSEN
Transmission, is responsible for maintaining and investing in the high voltage
132kV, 220kV, 275kV and 400kV electricity networks in the north of Scotland.
SSEN Transmission is 25% owned by investment partner, Ontario Teachers'
Pension Plan Board. For more information go to ssen-transmission.co.uk
(https://www.ssen-transmission.co.uk/) .

 

 

 Enquiries
 Investors  SSE Investor Relations  ir@sse.com (mailto:ir@sse.com)        Michael Livingston             +44 (0)345 0760 530
 Media      SSE Media               media@sse.com (mailto:media@sse.com)  Glenn Barber Raymond Buchanan  +44 (0)345 0760 530

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