SSEN Transmission has issued its second green bond, a £500 million seven and 15-year dual tranche Eurobond.
The proceeds of this bond are to fund part of SSEN Transmissions programme of what it described as "critical investments" in transmission network infrastructure to help accommodate the increase in renewables required to achieve net zero.
This includes the development of the strategic infrastructure required to enable the UK government’s goal of 40GW of offshore wind by 2030.
The green bond is SSE's fourth in five years, bringing the total outstanding to £2 billion. Of the latest £500 million bond, half is to mature in March 2028 and half in March 2036 at coupons of 1.5% and 2.125% respectively.
It follows SSE publishing a new framework through which it intends to issue its first sustainability-linked bond, with this setting a coupon based on a commitment from the company to achieve certain sustainability-related key performance indicators (KPIs). If the company failed to do so, there would be a step-up in the coupon.
Gregor Alexander, SSE finance director, explained that in financing investments in low-carbon infrastructure through green bonds - and potentially future sustainability-linked bonds - SSE is helping to attract "more capital into initiatives that will drive progress towards net zero".
It comes as the government unveiled at least £15 billion for green bonds in its Budget earlier this month, alongside providing more detail on plans for a UK Infrastructure Bank.