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 new €1,000m hybrid has been issued as a perpetual non-call six-year note at a coupon of 4.0%.

The intent is to use the proceeds to replace SSE's hybrids issued in 2017, as tranches of $900m and £300m, which have a first coupon reset date of 16 September 2022.  The three-month issuer par call means these hybrids can be called from 16 June 2022.  

Gregor Alexander, SSE's Finance Director, said "We have always viewed optionality, agility and discipline as important qualities in financing. This has only been emphasised by recent volatility in the capital markets due to inflation impacting on Central Bank plans for raising rates and the conflict in Ukraine.

Notwithstanding the current challenging market conditions, today's new hybrid has been well received, and was well oversubscribed. This latest hybrid issuance is consistent with our commitment to maintaining a strong balance sheet as we continue our Net Zero Acceleration Programme investments."

Notes

The first call date of the new €1,000m perpetual hybrid is at any time in the three-month period to 21 April 2028. This hybrid will be equity (cash) accounted with the coupon, payable annually in arrears on 21 April each year, commencing on 21 April 2023, presented as distributions to other equity holders and reflected within adjusted earnings per share.