SSE launches record '˜green bond' to tackle climate change

Utility giant SSE has issued the biggest-ever 'green' bond by a UK company.

SSE will use the bond proceeds to refinance its wind farm portfolio. Picture: John Devlin

The Perth-based group said the €600 million (£553m) bond will provide capital to refinance its portfolio of wind farms that have been recently constructed or are under construction.

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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.