Ørsted A/S Announces Issuance of Green Hybrid Capital Securities

Ørsted A/S has declared its plans to issue subordinated green hybrid capital securities. The securities, promising a sizeable benchmark figure in euros, are set to have a first reset date 5.75 years post-issuance, extending final maturity till 3024. This strategic financial move aims to refinance the existing EUR 500 million, 2.25% hybrid capital securities due for first reset in November 2024.

The company also intends to proactively manage its hybrid capital portfolio through this issue. Concurrently, Ørsted is reaching out to current holders of the 2017 securities, proposing a tender offer for repurchase. The proceeds from this issuance are earmarked for renewable energy project investments, aligning with Ørsted's steadfast commitment to green financing, a commitment underscored by a "Dark Green" shading from Cicero's second opinion on their green finance framework.

Credit ratings agencies Moody's, Standard & Poor's, and Fitch have assigned ratings to Ørsted and its upcoming green hybrid capital securities, reflecting diverse outlooks on the company's financial health. The transaction sees Morgan Stanley as the Joint Bookrunner and Global Coordinator, along with other financial giants participating as Joint Bookrunners.