SSE PLC

Capital/Financing Update • Mar 3, 2017

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RNS Number : 4627Y

SSE PLC

03 March 2017

SSE PLC

ISSUE OF HYBRID CAPITAL SECURITIES

SSE plc has successfully launched an issue of hybrid capital securities, a financial instrument which is subordinate to all senior creditors.  This dual tranche issue comprises £300m with a coupon of 3.625% and $900m with a coupon of 4.75%. The $900m tranche has been swapped back to both Euros and Sterling, bringing the all-in rate down to 2.72% and resulting in an all-in funding cost for both tranches to SSE of 3.02% per annum. This compares to the all-in funding cost of 4.02% achieved on SSE's most recent hybrid capital securities issued in 2015.

Gregor Alexander, SSE's Finance Director, said "This hybrid issuance is another significant piece of funding and an excellent result for SSE, with the lowest US Dollar hybrid coupon by an EMEA corporate issuer and the lowest Sterling corporate hybrid coupon achieved to date. The intent is to use the proceeds to replace SSE's hybrid issued in 2012 (at an all-in rate of 5.6%), which has an issuer first call date on 1 October 2017. This latest attractively priced issue was achieved on the back of strong investor demand in both Europe and Asia. It complements SSE's already well-financed investment programme and is consistent with our commitment to maintaining a strong balance sheet."

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