SSEN Transmission, the company that runs the high-voltage electricity grid in the north of Scotland, has raised £640million to help fund major upgrades to the network.
The money has been borrowed through a green bond – a type of loan from investors that must be spent on environmentally-friendly projects.
The bond will be repaid in 2033, with investors earning about 3.4% interest each year.
SSEN Transmission is 75% owned by SSE plc, which is highlighting the deal as part of its wider green finance programme.
It is the second time SSEN has raised money in the Euro bond market and contributes to SSE’s total of £5.5billion in green bonds, making it the UK’s largest corporate issuer.
The funds will support a £22 billion investment programme to expand and reinforce the power network in northern Scotland.
These upgrades are key to connecting new onshore and offshore wind farms and ensuring clean electricity can be transported from Scotland to homes and businesses across the UK.
Barry O’Regan, SSE’s chief financial officer, said: "SSE is at the heart of the clean energy transition, investing in high-quality assets across the Group.
"Our transmission business is growing rapidly and this bond offers yet another attractive proposition to investors looking to finance green infrastructure.
"This is SSEN Transmission's second issuance in the Euro bond market. It adds to our growing green bond portfolio and is consistent with our commitment to maintaining a strong balance sheet through financial discipline."
Last week, the firm confirmed it will submit a consent application for its proposed Kintore–Tealing 400kV overhead line project, a major part of the £22billion investment programme.
Following one of the biggest consultation exercises ever held in the north of Scotland, the project is now set to go before the Scottish Government for approval.