Client stories

SSE issues €650m green bond as it ramps up net-zero programme

Building a better world of energy for tomorrow

SSE is a leading generator of renewable electricity and one of the largest electricity network companies in the UK. The FTSE 100 company develops, owns and operates low carbon infrastructure to support the zero-carbon transition. This includes onshore and offshore wind, hydro power, electricity transmission and distribution grids, and efficient gas-fired generation, alongside energy products and services for businesses. 

SSE continues to make progress with the delivery of its £12.5bn Net-Zero Acceleration Programme, set out last November, which will see it double its renewables capacity by 2026. SSE also expects to deliver around a fifth of the UK’s target of 50GW of offshore wind by 2030, requiring investment of approximately £25 billion in the UK alone by the end of the decade.

Strong investor demand allows for upsizing of Green Bond

SSE, which has raised the equivalent of around £2.5 billion under their Green Bond framework to date, making the Scottish company the largest issuer of Green Bonds in the UK corporate sector, asked NatWest to support a new green issuance in the role of Active Bookrunner.

Taking advantage of a quiet issuance window, SSE announced the Green Bond to the market with an expected size of €500 million. The investor response was strong from the start, with the orderbook reaching over €3.8 billion pre price guidance. Demand was such that SSE could upsize the transaction to €650 million and at the same time tighten pricing 20 basis points from the Initial Price Talk (IPT).

More than 260 accounts were involved in the final orderbook, which peaked in excess of €5.75 billion, with demand well-diversified across geographies. Over 70% of the allocation went to the asset management community, which also generated the largest single-tranche orderbook since mid-March this year.

In line with SSE’s Green Bond Framework, proceeds of this issuance will be used to finance/refinance eligible green projects, such as the Viking and Seagreen wind farms, as well as the world’s largest offshore wind farm at Dogger Bank.

Green Bond helps deliver cleaner and more affordable energy

Gregor Alexander, SSE’s Finance Director, commented: “Notwithstanding the current challenging market conditions, this new green bond has been extremely well received, and was considerably oversubscribed. This bond is consistent with our commitment to maintaining a strong balance sheet as we continue our Net Zero Acceleration Programme investments, and will enable us to continue to deliver cleaner, more secure and more affordable energy.”

Peter Dooley, NatWest, said: “We’re delighted to have been able to help SSE achieve this positive result in terms of size and pricing, in spite of challenging market conditions, where the significant oversubscription underlines the support for SSE’s strong credentials. Climate and sustainability are at the heart of our purpose-driven strategy, and we’re committed to guiding corporate and institutional customers such as SSE to transition to net-zero and a more sustainable economy.”

Dean Shahfar, NatWest, added: “We were pleased to help SSE fortify their position as the UK’s largest issuer of Green Bonds, while more importantly enabling further progress on their impressive Net Zero agenda. This transaction will contribute to the development of high-quality renewable energy projects across the UK – the keystone of the energy market of the future.”


This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. NatWest Markets does not undertake to update you of such changes.  It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does NatWest Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other NatWest Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. NatWest Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does NatWest Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on NatWest Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.

This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. NatWest Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

NatWest Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. NatWest Markets N.V. is incorporated with limited liability in the Netherlands, authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, the Netherlands. Branch Reg No. in England BR001029. NatWest Markets Plc is, in certain jurisdictions, an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is, in certain jurisdictions, an authorised agent of NatWest Markets Plc. NatWest Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through NatWest Markets Securities Inc., a FINRA registered broker-dealer (, a SIPC member ( and a wholly owned indirect subsidiary of NatWest Markets Plc.


Copyright 2022 © NatWest Markets Plc. All rights reserved.

Related articles

Supporting Low Carbon to deliver 1GW of renewable power generation

Founded in 2011, Low Carbon is a global renewable energy investment and asset management company focussed on projects across a range of renewable energy technologies, including solar PV (solar photovoltaics), wind, energy storage, waste-to-energy and energy efficiency.

Empowering smarter travel choices to connect people

NRW.BANK, is the promotional bank of German state North Rhine-Westphalia (NRW). Its three development areas “Economy”, “Housing” and “Infrastructure/Municipalities”, use a range of tools – from low-interest promotion loans to equity financing, and advisory services.

Aquila Clean Energy financing for renewable energy projects

Aquila Clean Energy EMEA develops and operates wind and solar parks, hydropower plants and battery storage across Europe, managing a portfolio with a total capacity of more than 8.2GW. The company currently has a pipeline of more than 50 projects in Spain and Portugal of predominately solar PV (solar photovoltaics) and onshore wind assets with a total capacity of 2.6GW.