(Alliance News) - SSE PLC said Tuesday it has launched a EUR1.1 billion five and ten-year dual tranche euro bond, which will go towards refinancing and fund requirements for the rest of 2020.
The first tranche is for EUR600 million maturing April 2025 and the second for EUR500 million maturing April 2030, with coupons of 1.25% and 1.75% respectively.
Both tranches have been swapped to sterling resulting in a funding costs of 2.4% for the five-year and 2.9% for the ten-year.
"In the past few weeks capital markets have been disrupted and extremely volatile due to Covid-19, resulting in SSE choosing to adapt its funding plans for 20/21. With bond markets recovering recently we have taken this window of opportunity to issue SSE's first dual tranche senior Euro bond," said Finance Director Gregor Alexander.
"With sterling equivalent proceeds of around GBP975 million this issuance will significantly help cover our refinancing and funding requirements for the remainder of the year, as we continue our low carbon investment programme," Alexander added.
Shares in the FTSE 100 energy company closed 2.3% higher at 1,157.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
SSE (SSE)
