Ørsted bags EUR-2 billion sustainability-linked debt

Ørsted A/S (CPH:ORSTED) has secured a EUR-2-billion (USD 2.32bn) sustainability-linked syndicated revolving credit facility to back its general corporate needs, the Danish energy group said on Monday.

The five-year debt, which has two one-year extension options, will replace the company's existing, undrawn revolving credit line of EUR 1.4 billion, which it signed in December 2015. The new facility is tied to Ørsted's sustainability targets and its interest margin will vary based on the achievement of certain sustainability goals on an annual basis.

More specifically, the interest margin will depend on Ørsted's science-based target of reducing the carbon emissions from its energy generation and operations (Scope 1 and 2) to 10 grams of carbon dioxide (CO2) equivalent per kWh by 2025. The interest is also linked to Ørsted's commitment to spend DKK 350 billion (USD 54.5bn/EUR 47bn) on green investments in 2020-2027 as part of its efforts to reach 50 GW of installed renewable energy capacity by 2030.

Nordea is the sole coordinating mandated lead arranger and bookrunner of the deal. Among the mandated lead arrangers and bookrunners are Bank of America, Barclays Bank PLC, BNP Paribas.

(EUR 1.0 = USD 1.158)

(DKK 1.0 = 0.156/EUR 0.134)

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