SSE PLC - Perth, Scotland-based electricity generator - Launches €1.30 billion dual tranche issue of hybrid capital securities, a financial instrument which is subordinate to all senior creditors. The dual tranche issue comprises: a perpetual non-call 5.25 year note at €800 million with a yield of 4.075% and a coupon of 4.0%; and a perpetual non-call 8.0 year note at €500 million with a yield of 4.55% and coupon of 4.5%. Plans to use the proceeds to replace SSE’s £600 million hybrid capital security issued in 2020, which has a first coupon reset date of April 14 2026. The three-month issuer par call on this hybrid means it can be called from January 14 2026. The issue increases SSE’s total outstanding hybrids by around £500 million to £2.4 billion, Chief Financial Officer Barry O’Regan says: ‘SSE is at the heart of the clean energy transition and these new hybrids will contribute towards funding our portfolio of premium investment options as part of our £17.5 billion investment plan to March 2027.’ Notes the new hybrids were ‘well received at four times oversubscribed, offering yet another attractive SSE proposition to investors looking to channel finance into green infrastructure.’
Current stock price: 1,813.00 pence, closed up 0.9% in London on Thursday
12-month change: up 2.4%
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