ScottishPower announce that it has launched an issue of £250m fixed rate Bonds. The issue is being lead managed by Barclays Capital Group. HSBC Markets and Greenwich NatWest have been appointed as co-lead managers.

The net proceeds of the issue will be used for the refinancing of commercial paper issued following the acquisition of Southern Water.

The coupon on the Bonds has been set at 6.75% per annum and the yield to investors is 6.799%, equivalent to a margin of 90 basis points over the gross redemption yield of the 8% Treasury Stock 2021. Interest on the Bonds will be payable annually in arrears on 29 May and the Bonds will be repayable in full on 29 May 2023.

Application will be made to the London Stock Exchange for admission of the Bonds to the Official List. It is expected that listing will be granted and that official dealing will commence on 1 June 1998.

ScottishPower Finance Director Ian Russell said: "This is the group's second public bond issue under the Debt Issuance Programme established in November 1997. It marks a further significant step in the extension of the maturity profile of the group's borrowings at a time of low long-term interest rates".

Further Information:
ScottishPower Press Office                                      0141 248 8200