Issue of Capital Hybrid Secur

RNS Number : 3850S

Scottish & Southern Energy PLC

08 September 2010

 



SCOTTISH AND SOUTHERN ENERGY PLC

ISSUE OF CAPITAL HYBRID SECURITIES

SSE (Scottish and Southern Energy plc) has successfully launched an issue of capital hybrid securities, a financial instrument which is perpetual and subordinate to all senior creditors.  The dual tranche issue comprises £750m and €500m and has an all-in funding cost to SSE of around 5.6% per annum.

This hybrid capital securities launch in Sterling is the first ever by a UK-listed company, and the launch is the first ever by a utility company which is not state-owned.

In the last 12 months, SSE has also:

·     issued a nine-year, £500m sterling bond (September 2009);

·     secured a £400m loan facility from the European Investment Bank (March 2010); and

·     signed; an amendment agreement with banks to extend and reduce the price of its main Revolving Credit Facility (£900m) by three years, to 2015 (August 2010).

Gregor Alexander, Finance Director of SSE, said:

"This hybrid capital security has been extremely well-received in the financial markets.  It will provide another source of attractively-priced funding for us to complement our already well-financed investment programme.  At the same time, we remain totally committed to maintaining a strong balance sheet and to financial discipline generally, especially in the assessment of future investment options."  

 

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