Ørsted issues green bonds for offshore wind in 3 tranches

Source: Ørsted A/S

Danish energy company Ørsted A/S (CPH:ORSTED) yesterday said it has completed the pricing of its latest unsecured green senior bonds issuance, amounting to GBP 900 million (USD 1.17bn/EUR 1.05bn).

The proceeds 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 UK.

The green bonds will be issued in three tranches, two with a fixed-rate coupon and one inflation-linked tranche (CPI) with maturity in 2034. The table contains details of the tranches, all of which have settlement on May 16, 2019.

Details	Tranche 1	Tranche 2	Tranche 3
Nominal amount (GBP million)	350	300	250
Maturity date	May 17, 2027	May 16, 2033	May 16, 2034
Index	N/A	N/A	UK Consumer Price Index (for all items) published by the Office for National Statistics (CPI)
Coupon	2.125% (fixed until maturity)	2.5% (fixed until maturity)	0.375%
Price (in % of nominal amount)	99.551%	98.563%	99.927%
Orderbook	> 3.3x oversubscribed	> 1.6x oversubscribed	> 1.2x oversubscribed

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 issuance. All bonds will be listed on the Luxembourg Stock Exchange.

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