Ørsted, one of the world’s biggest developers and operators of offshore wind farms, has announced the launch of a rights issue to raise new capital.
The rights issue sees Ørsted offering shares with pre-emptive rights for existing shareholders between 19 September and 2 October, with the proceeds set to cover the immediate financing needs created by retaining full ownership of the Sunrise Wind project in the US.
Ørsted acquired the 50% stake in Sunrise Wind owned by former joint venture partner Eversource Energy last year. Sunrise Wind is a comprehensive wind farm located off the coast of New York.
Financial resilience
In addition, the proceeds will strengthen Ørsted’s capital structure and contribute to its financial resilience between now and 2027 – a period in which the company plans to complete 8.1 gigawatts (GW) of offshore wind projects.
‘The proceeds will help cement our position as one of the leading players in offshore wind, as it will create a robust foundation for Ørsted’s value creation through potential investments in new offshore wind projects in our core markets in Europe, and help contribute to European energy independence,’ the company said in a statement.
Once fully operational, Ørsted’s total installed offshore wind capacity will reach 18.3 GW.
The timeline for the offering commences on 16 September, which is the last day of trading in existing shares with subscription rights. On 17 September, existing shares will trade without subscription rights, and subscription rights themselves will begin trading. The subscription period for new shares will open on 19 September and close on 2 October, with the result of the offering published on 6 October.
‘Long-term value creation’
“We’re raising capital to cover immediate financing needs from retaining full ownership of Sunrise Wind, to manage risks from regulatory uncertainty in the US, and to strengthen Ørsted’s capital structure so we can deliver on our growth pipeline and long-term value creation,” commented Rasmus Errboe,
president and CEO of Ørsted.
Headquartered in Denmark, Ørsted currently has 10.2 GW of installed offshore capacity. Its broader renewable energy portfolio, which includes offshore and onshore wind, solar, energy storage, and bioenergy, boasts more than 18 GW of capacity across Europe, Asia Pacific, and North America. The company reported an operating profit of DKK 24.8 billion last year, excluding partnerships and cancellation fees. Read more here.
