SSE has reaffirmed its commitment to tackling climate change by issuing the biggest ever green bond by a UK company.
The €600m 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.
In a statement the company said, “The meaningful participation of socially responsible investors has demonstrated there is material appetite for financial products aligned with the mitigation of environmental concerns.
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.”
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. 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.”
SSE asserted that it 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.