SSE’s portfolio includes onshore and offshore wind farms. Stock image. Photo: Getty
Bloomberg
SSE Plc is exploring funding options, including a share sale that could raise billions of pounds, as the utility seeks capital to meet a grid spending boost, according to people familiar with the matter.
The London-listed power generator, whose businesses include SSE Airtricity in Ireland, has been holding discussions with advisers on proposals to bolster its balance sheet, the sources said, asking not to be identified as the information is private. Details have not been finalised, they added.
The company, which has previously sold a stake in its network assets, could also look at other options to raise capital, according to the sources. An announcement could come as soon as the coming weeks, should SSE decide to proceed with the fundraising, they said.
A representative for SSE said the company does not comment on market speculation.
A fundraising would see SSE joining peers such as Orsted A/S in tapping the market to shore up capital. State-backed Orsted last month raised 60 billion Danish kroner (€8bn) through a rights offering, as part of its efforts to tackle a downturn in the wind-power industry. That deal marked the biggest fundraising for a European energy firm in over a decade.
SSE has announced an increase in spending to help cope with a surge in renewable power across the UK. It reported a 60pc increase in grid spending over the fiscal first half to £1.1bn (€1.24bn), after winning approval for three large transmission projects.
The company announced a £22bn investment last year to bolster Scotland’s grid. The project is seen as key to the UK’s green targets.
Year-to-date, SSE shares have gained more than 16pc, giving the firm a market value of about £20.7bn. It is scheduled to report its first-half results on November 12.
SSE is one of the biggest generator of renewables and flexible energy in Ireland and the UK, according to its website. Its portfolio includes onshore and offshore wind farms, hydropower, electricity transmission and distribution networks. ?
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