REG - SSE Plc - SSEN TRANSMISSION AGREES £350M PRIVATE PLACEMENT

SSEAnnouncement

31/03/2022 16:00

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RNS Number : 8307G  SSE PLC  31 March 2022

 

SSEN TRANSMISSION AGREES NEW £350M PRIVATE PLACEMENT

 

·    £350m, 10- and 15-year, dual tranche Private Placement with £175m
maturing in June 2032 and £175m in June 2037 at rates of 3.13 per cent and
3.24 per cent respectively.

·    Will support critical investments in electricity transmission
infrastructure to deliver cleaner, home-grown energy supplies

SSEN Transmission, a subsidiary of leading low-carbon energy company SSE plc,
has successfully agreed terms for a £350m Private Placement with Pricoa
Private Capital, which is part of PGIM, Inc. and one of the largest investors
in private debt in the UK and globally. 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.

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.

This Private Placement follows the £850m of green bonds issued by SSEN
Transmission since 2019.

Gregor Alexander, Finance Director of SSE plc, 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."

 

Notes to Editors:

·    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.

·    SSEN Transmission is the wholly owned subsidiary of SSE plc.

 

 Enquiries
 Investors  SSE Investor Relations   ir@sse.com (mailto:ir@sse.com)        Sally Fairbairn, Michael Livingston  +44 (0)345 0760 530
 Media      SSE Media                media@sse.com (mailto:media@sse.com)  Sam Peacock,                         +44 (0)345 0760 530

                                                                           Glenn Barber

            MHP Communications                                             Oliver Hughes                        +44 (0)7885 224 532
                                                                           Simon Hockridge                      +44 (0)7709 496 125

            Pricoa Private Capital   adam.shield                           Adam Shield                          +44 (0)7791 850058

                                     @pricoa.com

 

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