SSE issues €600m debt facility

Suzie Neuwirth
FTSE 100-listed energy giant SSE yesterday announced it has issued a €600m (£511m) bond, taking advantage of low-cost funding in the current market conditions.

The company did not reveal what the proceeds of the financing would be used for, but finance director Gregor Alexander said that the issue enables them “to capitalise on current low interest rates”.

“In this climate, there is a possibility we will see SSE launch another bond to maintain its balance sheet,” Brenda Kelly, senior market strategist at IG, told City A.M. “This is the way to go in terms of corporate bonds.”

BBVA, Lloyds, Santander and Bank of Tokyo-Mitsubishi were bookrunners on the transaction.

SSE – which is one of the so-called big six energy firms – last month posted an increase in annual profits, after raising gas prices over the winter.

Outgoing chief executive Ian Marchant told City A.M. that SSE’s retail unit was only a small part of the business and that its margins “stand scrutiny compared to other retailers”. SSE’s shares closed down 0.2 per cent at 1,511p yesterday.