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SSE issues biggest ever UK green bond, worth €600mn

SSE has launched a 600mn euro green bond, the UK's largest ever

British energy firm SSE has reaffirmed its commitment to tackling climate change by issuing the biggest ever green bond by a UK company, which is worth €600mn.

The bond is the first of its kind issued by a UK headquartered energy company and supports not only the development of an active UK market in environmentally-friendly capital market products but, perhaps most importantly shows a strong commitment towards the environment and future generations. 

This eight-year, 0.875% green bond provides capital that SSE will use to refinance SSE’s portfolio of recently constructed or under construction onshore wind farms.

There was significant demand for this green bond, which allowed SSE to price at the tighter end of guidance achieving its lowest ever coupon for a senior bond. 

SSE said the meaningful participation of socially responsible investors has demonstrated there is material appetite for financial products aligned with the mitigation of environmental concerns.

Gregor Alexander, Finance Director of SSE, said: “In line with our innovative approach to financing investment and as major investor in the UK and Ireland’s renewable energy infrastructure, we are pleased this new issuance shows our commitment to SSE’s sustainability and responsibility principles.

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“At the same time we are being consistent with our commitment to maintaining a strong balance sheet and strong market rating, allowing this funding to be secured at very attractive pricing.”

In a statement, SSE added: “Investors are not only motivated by pure environmental considerations; they are also making pragmatic decisions about where they put their money.

“Climate change presents a material long-term risk to certain investments. Investing in a green bond that finances assets to mitigate climate change helps to manage that risk over the long term. 

“From SSE’s perspective, this green bond sends out a clear and unequivocal message: SSE supports the transition to a low carbon energy system and wants to see a sustainable economy in the UK and Ireland in the long term.”

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