Commentary & Deal Flow

Reoffer: PerpNC5.25: 4.375% / 99.972 PerpNC8: 4.80% / 99.674

PerpNC5.25: Final book €4bn. Peak book €4.80bn
PerpNC8: Final book €6bn. Peak book €5.60bn

Launched:
PerpNC5.25: €650m @ 4.375% - Orderbook €4.80bn
PerpNC8: €650m @ 4.80% - Orderbook €5.60bn
IPTs: PerpNC5.25: 4.875-5.000% PerpNC8: 5.375-5.500%

• Issuer: SSE plc
• Ticker: SSELN
• Country: GB
• Issuer LEI: 549300KI75VYLLMSK856
• Issuer Rating: Baa1 (stable) / BBB+ (stable) / BBB+ (stable) (Moody's/S&P/Fitch)
• Expected Instrument Rating: Baa3 / BBB- / BBB (Moody's/S&P/Fitch)
• Expected Equity Credit:
• • PerpNC5.25: Basket M (50%) / Intermediate (50%) until First Reset Date / 50%
  • PerpNC8: Basket M (50%) / Intermediate (50%) until First Reset Date / 50%
• Status: Direct, unsecured and subordinated obligations of the Issuer and rank pari passu among themselves and with Parity Obligations, and senior only to obligations in respect of the ordinary share capital of the Issuer.
• Size:
• • PerpNC5.25: €650m
  • PerpNC8: €650m
• Coupon:
• • PerpNC5.25: 4.375% ann
  • PerpNC8: 4.750% ann
• Reoffer yield / price:
• • PerpNC5.25: 4.375% / 99.972
  • PerpNC8: 4.80% / 99.674
• Issue Date: 09-Jun-26 (T+5)
• Tenor:
• • PerpNC5.25: Perpetual NC5.25
  • PerpNC8: Perpetual NC8
• First Call Date:
• • PerpNC5.25: 09-Jun-31
  • PerpNC8: 09-Mar-34
• First Reset Date:
• • PerpNC5.25: 09-Sep-31 (Year 5.25)
  • PerpNC8: 09-Jun-34 (Year 8)
• Interest Rate:
• • PerpNC5.25: Until First Reset Date: Fixed, payable annually in arrear on 9 September in each year, commencing on 09-Sep-27 (Long first coupon). Thereafter: interest rate resets every 5 years to the then prevailing 5-year EUR mid-swap rate plus the initial margin plus the relevant step-up
  • PerpNC8: Until First Reset Date: Fixed, payable annually in arrear on 9 June in each year, commencing on 09-Jun-27. Thereafter: interest rate resets every 5 years to the then prevailing 5-year EUR mid-swap rate plus the initial margin plus the relevant step-up
• Mid-Swap Rate:
• • PerpNC5.25: 2.828% (interp)
  • PerpNC8: 2.931%
• Initial Margin:
• • PerpNC5.25: +154.7bps
  • PerpNC8: +186.9bps
• First Step-up (+25bps):
• • PerpNC5.25: 09-Sep-36 (Year 10.25)
  • PerpNC8: 09-Jun-39 (Year 13)
• Second Step-up (additional 75bps; +100bps cumulative):
• • PerpNC5.25: 09-Sep-51 (Year 25.25)
  • PerpNC8: 09-Jun-54 (Year 28)
• Optional Interest Deferral: At any time, in whole or in part, at the discretion of the Issuer, cumulative and compounding
• Settlement of Arrears of Interest: Optional at any time (in whole or in part). Mandatory (in whole but not in part) upon (i) declaration and/or payment of a dividend (interim or final), other distribution or payment on, or redemption, repurchase or acquisition of: (a) the Issuer’s ordinary shares, any obligations of the Issuer that rank pari passu therewith or any obligations of any Subsidiary of the Issuer which are subject to an Issuer guarantee ranking pari passu with the Issuer’s ordinary shares, or (b) any Parity Obligations, subject to customary exceptions; (ii) no deferral at next interest payment date; (iii) redemption.
• Optional Redemption (Issuer Call): At par at any time from First Call Date until First Reset Date (3-month par call) and on any annual interest payment date thereafter
• Special Event Redemption: At 101% until First Call Date, at par thereafter in case of an Accounting Event, a Capital Event, or a Tax Deductibility Event. At par at any time in case of a Withholding Tax Event, Clean-Up Call Event (75%) or Change of Control Event
• Change of Control Step-Up Margin: 500bps step-up upon a Change of Control Event if not redeemed
• Substitution and Variation: Substitution or variation option upon the occurrence of an Accounting Event, a Capital Event, a Tax Deductibility Event or a Withholding Tax Event, subject to certain conditions
• Replacement Language: Intentional replacement language subject to customary exemptions
• Denominations: €100k + €1k
• Governing Law: English law, subordination under Scots Law
• Listing: London Stock Exchange, Main Market
• Documentation: Under the Issuer’s €20,000,000,000 Euro Medium Term Note Programme Base Prospectus dated 01-Jun-26 (the “Base Prospectus”)
• Format / Type: Reg S Bearer (Cat 2), TEFRA D
• Use of Proceeds: General corporate purposes, including the refinancing of the Issuer’s existing 3.125% €500m Capital Securities (ISIN: XS2195190520)
• ISIN:
• • PerpNC5.25: XS3310370799
  • PerpNC8: XS3310370955
• Advertisement: This communication is an advertisement for the purposes of Prospectus Rules: Admission to Trading on a Regulated Market. It is not a prospectus. The Base Prospectus is available and the Final Terms, once published, will be available at https://www.sse.com/investors/debt-investors/emtn-programme/ and www.londonstockexchange.com/exchange/news/market-news/market-news-home.html
• Target Market (MiFID II / UK MiFIR) / No EEA PRIIPs or UK PRIIPs/CCI: Eligible Counterparties and Professional Clients only (all distribution channels). No EEA PRIIPs key information document (KID) or UK KID/CCI product summary has been prepared as not available to retail in EEA or the UK
• Joint Active Bookrunners: BBVA, BNP Paribas, BofA Securities (B&D), J.P. Morgan
• Selling Restrictions: US, Prohibition on sales to EEA and UK retail investors, UK, Belgium, Italy, Japan and Singapore. Canada – offers/sales into Ontario/Alberta/British Columbia only, subject to compliance with applicable law
• Timing: TOE: 15:23 / FTT at 16:00 UKT