Ørsted kicks off EUR-500m issue of green hybrid capital securities

Danish clean energy group Ørsted A/S (CPH:ORSTED) plans to launch a EUR-500-million (USD 518.6m) offering of green hybrid capital securities, seeking to raise funds for new renewable energy investments.

With the placement, the Danish firm aims to refinance the outstanding EUR 350 million of its EUR 700 million of 6.25% hybrid capital securities issued in 2013, it said in a bourse filing on Tuesday. BNP Paribas, Deutsche Bank, Morgan Stanley and MUFG are managing the transaction.

The new green hybrid capital subordinated securities mature in 3022, with their first interest reset date coming after six years. Ørsted expects they will receive the Baa3 rating by Moody’s, BB+ by Standard and Poor’s, and BBB- by Fitch.

Separately, Ørsted has invited holders of its 2013 securities to tender their holdings for purchase by the company, with the offer being conditional on the success of the abovementioned placement. The Danish firm is offering a purchase price of 102% of the securities’ principal amount.

The offer will expire on December 5, with results to be announced on the next day. The securities are due in 3013 and are callable at par on the first interest reset date in June 2023.

Ørsted has committed to reaching 50 GW of installed renewable energy capacity by 2030. The two deals do not change the company’s 2022 financial outlook or its expected investment level for 2022, it noted.

(EUR 1.0 = USD 1.037)

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