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SSEN Transmission, part of the SSE Group, has announced the launch of its debut issuance in the Euro bond market with an €850m, 8-year green bond maturing in September 2032.
Last week's issuance is SSE's eighth green bond in seven years and reaffirms the Group's status as the largest UK corporate issuer of green bonds. This brings the total outstanding green bonds issued by SSE and its subsidiaries to £4.4bn, of which £2.0bn has been issued directly by SSEN Transmission.
The proceeds from the green bond will specifically help finance and/or refinance critical national infrastructure projects within SSEN Transmission, with the business benefiting from strong visibility over future growth through Ofgem's Large Onshore Transmission Investments (LOTI) re-opener and the Accelerated Strategic Transmission Investment (ASTI) framework.
With increasing visibility over the investment in LOTI and ASTI projects, SSEN Transmission is expected to invest around £10bn in the regulated electricity transmission network across the five years to 2026/27. This investment is expected to make up almost 40% of the SSE Group's £20.5bn Net Zero Acceleration Programme Plus (NZAP Plus), with investment in electricity infrastructure being crucial for the transition to net zero.
Speaking as the green bond was issued, Barry O'Regan, SSE's Chief Financial Officer, said: "SSE is at the heart of the clean energy transition investing in high-quality assets right across the Group. Our transmission business is growing strongly, delivering nationally important investments, which will make a significant impact as the UK seeks to meet renewables deployment and climate targets. SSEN Transmission's projects are mission-critical to these efforts and this bond offers an attractive proposition to investors looking to channel finance into green infrastructure.
"The debut issuance for SSEN Transmission in the Euro bond market has been extremely well received and was more than three times oversubscribed. This new issuance will add to our growing green bond portfolio and is consistent with our commitment to maintaining a strong balance sheet through financial discipline whilst delivering £20.5bn of investment under our NZAP Plus."
