Scottish and Southern Energy has launched an issue of capital hybrid securities, a financial instrument which is perpetual and subordinate to all senior creditors.
The dual tranche issue comprises £750m and €500m and has an all-in funding cost to SSE of around 5.6% per annum.
This hybrid capital securities launch in sterling is the first ever by a UK-listed company, and is the first ever by a utility company which is not state-owned.
In the last 12 months, SSE has also issued a nine-year, £500m sterling bond and secured a £400m loan facility from the European Investment Bank.
SSE finance director Gregor Alexander said: “This hybrid capital security has been extremely well-received in the financial markets. It will provide another source of attractively-priced funding for us to complement our already well-financed investment programme. At the same time, we remain totally committed to maintaining a strong balance sheet and to financial discipline generally, especially in the assessment of future investment options.”