Ørsted to back offshore wind growth with UK green bond sale

Danish energy company Ørsted A/S (CPH:ORSTED) today unveiled plans to issue GBP-denominated green senior bonds, seeking to back investments in the offshore wind sector.

More specifically, the company will launch a multi-tranche issue of unsecured green bonds, with the tranches possibly including an 8-year benchmark and 14-year nominal fixed rate tenors. It also envisages a potential index-linked tranche with an expected 15-year maturity.

Funds from the offering will go for offshore wind investments as part of Ørsted’s 2025 green growth target, among which is the 1,386-MW Hornsea 2 wind project in the North Sea. As previously announced, Ørsted intends to pour some DKK 200 billion (USD 30bn/EUR 26.8bn) gross in green energy projects by 2025 and expects to have 15 GW of installed offshore wind capacity by the same year.

The final size and pricing of the issue will be set once the book-building process is completed, Ørsted said. The Danish firm has hired Barclays Bank PLC, Goldman Sachs International, Morgan Stanley & Co International PLC and NatWest Market PLC as joint lead managers on the transaction.

(DKK 1.0 = USD 0.150/EUR 0.134)

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