SSE has “expanded its global financing strategy” by entering the Australian bond market for the first time, selling (£520m) of Green “Kangaroo” Bonds.

Australian-dollar Kangaroo Bonds are issued in Australian markets by overseas firms and today’s was in two tranches: A$600m 5-year green bond maturing on 20 August 2031 at a fixed coupon of 5.6% and A$400m 10-year green bond maturing on 20 August 2036 at a fixed coupon of 6.3%.

The energy company said that the “issuance was 2.5 times oversubscribed” making it the third largest senior Kangaroo corporate orderbook “of all time,” due to strong interest from investors.

Both tranches have been swapped back to Sterling giving a weighted average funding cost of 5.7% for around £520m of bonds with an average life of 7 years.

It is SSE’s 12th green bond since 2017 and underlines our status as the largest UK corporate issuer of green bonds. It brings the total outstanding green bonds issued by SSE and its subsidiaries to £5.9bn.

The company said: “The successful debut in the Australian bond market demonstrates our ability to access diverse pools of capital while securing competitive long-term funding.

“During FY27 we have now raised £1.1bn of hybrid bonds at an average cost of 4.6% and average life of 6.6 years and £1.9bn of new senior debt with an average cost of 5.3% and an average tenor of 8.2 years.”