Issue of Hydrid Capital Securities

RNS Number : 0292M

SSE PLC

11 September 2012

 



SSE plc

Issue of Hybrid Capital Securities

SSE plc has successfully launched an issue of hybrid capital securities, which is perpetual and subordinate to all senior creditors. The dual tranche issue comprises US $700m and €750m and has an all-in euro funding cost to SSE of around 5.6% per annum.

This is SSE's second issuance of hybrid capital securities and the first to include a US $ tranche, providing attractive additional diversification to SSE's funding. SSE's first issuance comprised £750m and €500m and was launched in September 2010.

In the last 12 months SSE has also:

            - issued a 10 year £300m bond in September 2011;

            - secured a 7 year JPY 15bn (c. £125m) loan in October 2011; and

            - undertaken a private placement of US$700m (c. £450m) in February 2012.

Gregor Alexander, Finance Director of SSE, said:

"This hybrid capital issuance is a significant piece of funding both in terms of scale and the additional diversity it brings to SSE's sources of funds, diversity that can also be seen in the mix of funding SSE has secured in the last 12 months.  This latest attractively-priced issue was achieved on the back of strong investor demand in both Europe and Asia. It complements SSE's already well-financed investment programme and is consistent with our commitment to maintaining a strong balance sheet."

 

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