Denmark's largest energy company Ørsted A/S plans to issue green senior bonds in the UK-market to finance its green growth ambition towards 2025 including the investments in 1,386MW Hornsea Two offshore wind farm.
With the bond issuance, Ørsted targets a multi-tranche senior unsecured GBP-Sterling green bond, subject to market conditions.
Tranches may include benchmark 8 year and 14-year nominal fixed rate tenors, alongside a potential index-linked tranche (linked to either UK RPI or CPI) with an expected 15-year maturity.
The bonds will be issued as green bonds where the proceeds will be applied for the financing of Ørsted’s investments in offshore wind projects in accordance with Ørsted’s Green Finance Framework, which was updated in April 2019 together with Nordea as Ørsted’s Green Finance Advisor and has received a second opinion with a Dark Green shading from Cicero.
The final sizes and pricing of the green bond tranches will be determined when the book-building process closes. Ørsted A/S is rated Baa1, stable outlook, by Moody’s, BBB+, stable outlook, by Standard & Poor’s, and BBB+, stable outlook, by Fitch.
Ørsted has appointed Barclays Bank PLC, Goldman Sachs International, Morgan Stanley & Co. International PLC and NatWest Market PLC as joint lead managers on the bond issuances.
Hornsea Project Two is located 89km north-east of Grimsby and will comprise 165 Siemens Gamesa 8MW wind turbines.