Looking to issue a dual-tranche green bond after last tapping into the euro senior market in 2017, Ørsted asked NatWest to support the transaction in the role of Active Bookrunner.
With a recent slowdown in supply given European holidays and launching its bonds early in the month when investors had new cash allocations and appetite for new issuances, Ørsted’s excellent timing for its return to the euro market paid off: the orderbook for both tranches grew steadily after the transaction was announced and topped at €4.4 billion, which allowed Ørsted to considerably tighten the price.
On the back of the strong demand, the energy company set the sizes at €600 million for the 6-year tranche, with a coupon of 2.250%, and at €750 million for the 11-year tranche, with a coupon of 2.875%.
The 6-year tranche was led by accounts from DACH countries taking 38% of the allocation, followed by French investors with 24%. Meanwhile, 39% of the 11-year tranche’s allocation went to French investors, 25% to DACH countries, and 23% to investors in the UK and Ireland – with significant demand from insurance and asset managers.
The proceeds of the two green senior bonds, issued under Ørsted’s Green Finance Framework, will go towards financing the company’s global build-out of renewable energy and green growth ambition of reaching approximately 50GW of installed capacity by 2030.