London Stock Exchange welcomes SSE plc celebrating the biggest ever green bond issuance by a UK company
SSE plc is one of the UK's leading energy companies, involved in the generation, distribution and supply of electricity and in the extraction, storage, distribution and supply of gas. Its core purpose is to provide the energy people need in a reliable and sustainable way. It supplies energy to around 7.77 million energy customers throughout Great Britain and Ireland; is frequently ranked number one for customer service; is the UK's leading generator of electricity from renewable sources. It became a Living Wage employer in September 2013 and was accredited with the Fair Tax Mark in October 2014.
SSE 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 it's portfolio of recently constructed or under construction onshore wind farms. The meaningful participation of socially responsible investors has demonstrated there is material appetite for financial products aligned with the mitigation of environmental concerns.
SSE believes 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 a 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."
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.