SSEN TRANSMISSION AGREES £350M PRIVATE PLACEMENT

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	[e-mail]	Sally Fairbairn, Michael Livingston	[phone]
Media	SSE Media	[e-mail]	Sam Peacock, Glenn Barber	[phone]
	MHP Communications		Oliver Hughes	[phone]
			Simon Hockridge	[phone]
	Pricoa Private Capital	adam.shield @pricoa.com	Adam Shield	[phone]

 

END

 

 

MSCZFLFXLXLEBBX