SSEN delivering on UK’s clean power, energy security and net zero ambitions

Best Sustainable Treasury Solution

Highly Commended Winner

SSE plc

Photo of Jithender Nambron, Bank of America and George Duncan, SSE plc.

George Duncan

Head of Group Funding

Andrew Binnie

Group Treasurer

United Kingdom

Scottish Hydro Electric Transmission, trading as SSEN Transmission (SSEN), is responsible for the electricity transmission network in northern Scotland, investing in and maintaining the high voltage electricity transmission network.

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The challenge

The strategic objective of SSEN is to enable the transition to a low-carbon economy, supporting the UK’s clean power and energy security ambitions. This requires building the electricity transmission network infrastructure to connect and transport renewable electricity in northern Scotland to the towns, villages and cities where it’s needed, as it delivers a network for net zero emissions.

The scale and pace of required investment accelerated as regulators and system planners set more ambitious expansion targets. This was the catalyst for SSEN to explore alternative sources of liquidity beyond traditional funding channels, and the impetus for Bank of America (BofA) to propose an innovative solution to raise significant long-term financing at scale to support strategic investment benefiting Scotland.

The solution

BofA led the structuring and execution of a £1bn financing package for SSEN, acting as Sole Bookrunner, National Wealth Fund (NWF) Coordinator, Green Loan Coordinator, NWF Facility Agent, Mandated Lead Arranger and one of the Lenders.

The transaction was structured as a dual-tranche, 12-year green loan facility, comprising £800m and £200m tranches, supported by an 80% guarantee from the UK Government’s NWF, enabling SSEN to support four major grid upgrade projects under way in northern Scotland. This new bank facility was successfully syndicated to a core group of SSEN’s relationship banks, led by BofA, and including seven others (which are all Lenders and MLA), reflecting strong market appetite for high-quality, sovereign-supported green infrastructure assets.

“Winning the Best Sustainable Treasury Solution for the bank facility supported by the National Wealth Fund’s financial guarantee shows the importance of grid upgrades in supporting greater electrification, more stable energy bills and economic growth throughout the nations and regions of Britain.”

George Duncan, Head of Group Funding

Best practice and innovation

The judges commended SSEN for focusing on enabling the transition to a low carbon economy. SSEN adopted an innovative financing package on a rapid implementation timeline. An impressive transaction with far-reaching consequences.

The transaction demonstrates best practice and innovation through the pioneering application of green sovereign guarantees to advance grid updates and the energy transition. The use of the UK Government’s NWF 80% guarantee for a regulated, investment-grade transmission operator at this scale represents a first of its kind application in the UK market. It creates an effective bridge between public policy objectives and private sector capital by mobilising significant bank funding capacity for nationally critical net zero infrastructure.

Key benefits

Cost savings.
Risk mitigation.
Number of banking partners/bank accounts reduced.
Exceptional implementation (budget/time).
Improved visibility.

The financing met its original objectives by providing SSEN with long-term, flexible and scalable funding to deliver strategically critical transmission infrastructure required for the UK’s net zero and energy security ambitions. The use of the NWF 80% guarantee enabled SSEN to secure funding at a scale and tenor unachievable through conventional funding sources alone.

This marked one of the first applications of the NWF guarantee for a highly rated UK corporate, directly addressing the challenge of financing unprecedented transmission investment requirements.

This solution is truly impactful because it enables the delivery of nationally critical energy infrastructure at a scale and pace required to meet the UK’s clean power, energy security and net zero ambitions, while delivering tangible economic and social benefits across Scotland and the wider UK.

Bank of America is delighted to congratulate SSE plc on this recognition for its innovative and impactful financing. The landmark green loan facility, supported by the UK National Wealth Fund, demonstrates how treasury can play a pivotal role in enabling energy transition. By mobilising long-term capital at scale, SSE is accelerating critical grid infrastructure that supports energy security and net zero ambitions. This pioneering structure sets a strong precedent for sustainable finance. Bank of America is proud to partner with SSE in delivering solutions that create lasting economic and societal value.

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The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2026 awards attracted 635 nominations. To find out more please visit treasurytoday.com/adam-smith-awards

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