Headquartered in Denmark, Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Moreover, Ørsted provides pioneering energy products to its customers around the world. 

Ørsted has been ranked amongst the world’s most sustainable energy companies in the Corporate Knights Global 100 Index since 2019 and is recognised on the CDP Climate Change A List as a global leader on climate action. The Second Party Opinion provider, CICERO, has rated Ørsted’s Green Finance Framework as “Dark Green” (its highest shade) and its alignment with market standards.

Ørsted, was also the first energy company in the world with a science-based net-zero target, as validated by the Science Based Targets initiative (SBTi), that covers its entire value chain: it aims for net-zero emissions across its full value chain by 2040[2], and wants to become carbon-neutral in energy generation and operations by 2025. 

Green bonds are fixed-income securities issued to raise capital for projects that have a positive environmental impact. Ørsted has been issuing green bonds since 2013, and in 2022 the company issued a record DKK 28.4 billion in green bonds and green hybrid bonds. This was the largest amount issued in one single calendar year by Ørsted and reflects the company’s growing portfolio of projects and ambition to have ~50GW of installed capacity in 2030. 

By investing in renewable energy, Ørsted supported progress towards the Paris Agreement and it aspires to have a transformative impact on the UN Sustainable Development Goals #7 on affordable and clean energy and #13 on climate action. As of 2022, projects supported with funds from the issuance of green bonds contributed to 4.2 million tonnes CO2 of avoided emissions and supported 4.5 million people with clean energy[3]. 

Looking to issue a multi-tranche green bond to raise further funds to support its strategy, Ørsted asked NatWest to support in the role of Active Bookrunner – the same role we had for the company’s dual-tranche green bond in June last year, and on 22 February 2023 the company secured investor commitment for an aggregate amount of nominal EUR 2 billion. 

The success of Ørsted’s latest green bond issuance reflects the demand for investment opportunities in companies with a long-term sustainability vision which play an essential role in supporting the transition to a low-carbon economy. 

Kasper Kiim Jensen, Ørsted, Vice President, Treasury & Capital Planning, said: “We’re very pleased with the continued investor support we receive, which helps us to achieve our green growth ambition of reaching approximately 50GW of installed capacity by 2030 and to play a key role in creating a world that runs entirely on green energy.”

Thomas Hansson, NatWest, said: “We are delighted to support Ørsted with the successful execution of their green triple-tranche EUR transaction. The formidable outcome is a testament to Ørsted’s strong standing in the credit market and their unwavering commitment to sustainability. We are proud to have partnered with a client that shares our values and purpose, and that recognises the importance of sustainable business practices. We look forward to continuing to support Ørsted with the green energy transition going forward.”

Dr Arthur Krebbers, NatWest, commented: “We are excited to help our customer, Ørsted, boost the capacity of renewable energy. Tackling climate change is of paramount importance to our business, our customers and the economies we operate in, and therefore it's central to NatWest’s purpose-led strategy. As a leading bank we have a significant responsibility, and the ability, to encourage, enable and to lead the way in helping build a net zero carbon economy.”

Sources:

1: Corporate Knights Global 100 index for 2023

2: Ørsted becomes the first energy company in the world with long-term science-based net-zero target

3: Green bond impact report 2022

Image: © Ørsted