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Ørsted issues green bonds for offshore wind in 3 tranches

Source: Ørsted A/S

May 10 (Renewables Now) - 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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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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