Ørsted Issues Green Bonds to Finance Next Wave of Offshore Wind Projects

The investment strategy will include the investment in the biggest offshore wind farm in the world, the Hornsea 2 in the United Kingdom with a capacity of 1,386 MW. 

The largest energy company in Denmark and the world’s largest offshore wind energy developer, Ørsted has successfully issued green bonds.

The company announced in a statement that it has secured a nominal £900 million (Rs 8171 crore) through the issuance of green senior bonds. The company has revealed that the green bonds have been issued to finance its green growth ambition towards 2025.

The investment strategy will include the investment in the offshore wind farm Hornsea 2 in the United Kingdom with a capacity of 1,386 MW. The Hornsea 2 wind farm will take over from Hornsea 1 project to become the biggest offshore wind farm in the world when it begins commercial operation.

The Danish power company has completed the pricing of new unsecured green senior bonds of nominal £900 million in total comprising a £350 million fixed-rate tranche with maturity in 2027, a £300 million fixed rate tranche with maturity in 2033 and £250 million inflation-linked tranches (CPI) with maturity in 2034. All tranches have settlement on 16 May 2019.

Key details of the new £350 million fixed rates green bond maturing in 2027:

Coupon (fixed until maturity): 2.125%; Price: 99.551% of the nominal amount; Orderbook: more than 3.3x oversubscribed

Key details of the new £300 million fixed rates green bond maturing in 2033:

Coupon (fixed until maturity): 2.5%; Price: 98.563% of the nominal amount; Orderbook: more than 1.6x oversubscribed

Key details of the new £250 million CPI-linked green bond maturing in 2034:

Coupon: 0.375%; Price: 99.927% of the nominal amount; Orderbook: more than 1.2x oversubscribed

Recently, Spanish renewable energy major, Siemens Gamesa Renewable Energy (SGRE) became the first wind turbine manufacturer to attain an investment grade rating. The company obtained a BBB- long-term credit rating, with a positive outlook, from Standard & Poor’s (S&P), and a Baa3 outlook stable rating from Moody’s. Siemens Gamesa has debuted in the public rating arena within investment grade.