UK utility SSE has raised £500m via a private placement to fund its capital programme and refinance maturing debt.
The company placed senior notes with 19 US and UK investors with 66% of the transaction in GBP and with 80% with a six-month delayed drwdown.
The transaction has a weighted average maturity of 9.6 yeras and an all-in funding costs of 3.1% once US dollar trance is swapped to GBP.
Agreements are subject to final documentation which is due by end-month.
Finance director Gregor Alexander said: “We are pleased that this attractively priced issue enables us to capitalise on current low interest rates and SSE’s strong market rating to secure funding at a low cost, whilst at the same time maintaining a diverse source of debt investors.
“This is consistent with our commitment to maintaining a strong balance sheet and to progress our investment plans.”
Image: SSE has raised cash in part to boost a portfolio that includes the Clyde wind farm (Siemens)
