Orsted to issue green bonds to fund offshore wind buildout

Orsted has announced plans to hold a new green bond issuance to help fund the construction of its offshore wind projects out to 2025.

They include the 1.4GW Hornsea Two project in the North Sea, which was one of three offshore windfarms to secure an agreement in the latest contracts for difference auction in September 2017.

The company said it expects to issue a mixture of eight-year and 14-year fixed-rate bonds as well as possibly an index-linked tranche that matures after 15 years. Prices and the overall value of the issuances have yet to be determined.

Barclays, Goldman Sachs, Morgan Stanley and NatWest have all been as joint lead managers of the programme.

Hornsea Two is set become the world’s largest offshore windfarm when it is commissioned in 2022, overtaking its sister project Hornsea One.

Orsted placed an order with Siemens Gamesa in June last year for the 165 8MW turbines which will make up Hornsea Two. It agreed to sell 50 per cent of Hornsea One to Global Infrastructure Partners for £4.46 billion the following November.