Share price news: SSE investing in renewables

Renewables deal in the pipeline for SSE after sourcing funding from Green Bond issue.

Share price news: SSE investing in renewables

Scottish renewable energy provider  SSE PLC (LON:SSE) has  issued a green bond to the value of EU650 million, which will mature in September 2025 with a 1.375 percent yield, according to Alliance News. The bond is the second of its type to be released by the company. When the proceeds of the bond are converted into sterling there will be an ‘all-in funding cost of around 2.6%’ (Alliance News). The capital raised from the bond will be used to invest in future renewable energy projects, such as the project under discussion with Norway’s  Equinor.

SSE PLC shares are currently trading at 1267.5 pence, up  6.00 ( 0.48%) , having closed at 1,261.50 pence on Tuesday, overperforming in comparison to the benchmark index which as of BST 09.11 is trading at  7614.13, down 3.09 pence  (-0.04%)

Focus on sustainability and responsibilty

SSE Finance Director, Gregor Alexander is quoted by Alliance News as saying: “In line with our innovative approach to finance investment and as a major investor in the UK and Ireland’s renewable energy infrastructure, we are pleased that this second Green Bond continues to show SSE’s focus on sustainability and responsibility principles. This funding is consistent with our commitment to maintain a strong balance sheet and strong market rating, and has been secured at very attractive pricing.”

The news will be seen as a positive story for SSE which experienced troubling headlines earlier in the year over the Competition and Marketing’s concern about its potential merger with Npower and its impact upon prices once competition is reduced. Then, in June, the company was fined GBP1 million for sending inaccurate statements to customers, which were blamed on  IT coding errors, as reported by The Guardian.

Dogger Bank decision by May

Reuters reported yesterday that SSE  are in negotiations with Equinor, formerly Statoil, to develop a 3.6 megawatt capacity offshore, North Sea windfarm  at Dogger Bank. It will be decided by next May whether Equinor will definitely go ahead with its investment in the renewable energy project.

 Equinor’s vice president in charge of renewable projects, Paal Eitrheim, had this to say: “We will be ready for the UK’s contract for difference (CfD) auction next May, so, yes, it means we’ll have the final investment decision by then.” (Reuters)

 

 

 

 

 

 

As of 09:35 BST, Wednesday, 29 August, SSE PLC share price is 1,505.50p.

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