SSE in biggest ever UK company green bond
Utility giant SSE, which owns Scottish Hydro, has issued the biggest-ever “green” bond by a UK company.
The Perth-based group said yesterday that the €600 million (£553m) bond will provide capital to refinance SSE’S portfolio of wind farms that have been recently constructed or are under construction.
SSE said the eight-year bond, which will pay a 0.875 per cent coupon, the bondholder equivalent of dividends, “reaffirmed its commitment to tackling climate change”.
The company added: “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.”
SSE said there had been “significant demand” for the bond, allowing it to achieve its lowest ever coupon for a senior bond.