REG-Ørsted A/S Ørsted becomes world’s first energy company to issue blue bonds

Oersted A/SAnnouncement

08/06/2023 15:30

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   Ørsted A/S (Orsted)
   Ørsted becomes world’s first energy company to issue blue bonds

   08-Jun-2023 / 16:15 CET/CEST

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   8.6.2023 16:14:54 CEST | Ørsted A/S | Investor News

   On World Ocean Day, Ørsted has become the first energy company in the
   world to issue blue bonds. The five-year, EUR 100 million blue bond was
   issued in a private placement format in accordance with the IFC Blue
   Finance Guidelines. Net proceeds from the issuance will be allocated to
   investments in offshore biodiversity, in line with Ørsted's 2030
   commitment to achieve a net-positive impact on biodiversity, as well as in
   sustainable shipping.

   Ørsted is proud to be the first energy company in the world to issue a
   blue bond with its EUR 100 million 3.625 % fixed-rate blue bond maturing
   in 2028. Blue bonds assist in diversifying and expanding the market for
   sustainable ocean financing, which is crucial for enhancing ocean health.
   Introduced in 2018, blue bonds are aimed at directing finance into
   ocean-based projects that have positive environmental, economic, and
   climate benefits.

   The funds Ørsted raised will finance initiatives that specifically target
    1 offshore biodiversity and  2 sustainable shipping. In the first
   category, Ørsted will invest further in measures to protect and restore
   marine and coastal biodiversity and in innovations to find new and better
   ways to do this at scale. For sustainable shipping, the company aims to
   play a leading role in developing green ocean fuels, enabling
   decarbonisation of ocean vessels.

   Sanda Ojiambo, UN Assistant Secretary-General and CEO of the UN Global
   Compact, believes that blue bonds play a significant role in innovating
   and scaling the solutions needed to build a more sustainable ocean
   economy, saying:

   “A thriving sustainable ocean economy holds many of the solutions needed
   to tackle the climate and nature crises of today. Investments in
   nature-positive offshore renewables solutions help to build the harmonious
   relationship we need between nature and business to ensure healthy and
   resilient ecosystems.”

   She continues: “To fund these ocean-based solutions at scale and meet the
   goals set forth by SDG 14, we need to increase financing to the
   sustainable ocean economy. Blue bonds, such as Ørsted's, issued by the
   private sector are important tools for delivering crucial financing for
   projects aimed at addressing a broad scope of environmental and social
   issues facing our world today.”

   Renewable energy and biodiversity are vital to the future of life on Earth
   Recognising the interdependence of the climate and biodiversity crises,
   Ørsted set the ambition in 2021 to deliver a net-positive biodiversity
   impact for all new renewable energy projects commissioned from 2030 at the
   latest.

   This means that Ørsted not only seeks to mitigate potential negative
   impacts, but also invests in wider restoration measures to actively
   enhance the health of ocean ecosystems. Work is already well underway to
   refine and test the best solutions to scale, with pilot projects ranging
   from  3 salt marsh and sea grass restoration,  4 3D-printed reefs for
   restoring critical ecosystems in the North Sea, and testing innovative new
   approaches to  5 coral reef restoration.

   “Climate change and the loss of nature go hand in hand, but with a massive
   build-out of green energy in harmony with nature, we can tackle
   both. We’re determined to leverage our renewable energy projects to revive
   nature and are well underway with tangible actions and projects. Our
   new collaboration with investors is essential for achieving the scale and
   pace of action needed. And we hope to inspire others to take up
   biodiversity action as well,” says Ingrid Reumert, Senior Vice President
   and Head of Global Stakeholder Relations at Ørsted.

   Blue bonds help bridge the financial gap for sustainable ocean action
   In recent years, the green bond market has experienced rapid growth,
   surpassing USD 2 trillion in total issuance^1. Similarly, blue bonds are
   expected to witness a robust market growth^2. Building on Ørsted’s strong
   record in sustainable green finance, the company is now actively exploring
   how to further contribute through blue bond financing.

   "We’re currently witnessing a substantial funding gap for sustainable
   ocean action. As pioneers in the industry, we believe the moment is right
   to introduce blue bonds, which are in a similar position to where green
   bonds were 10 years ago. Furthermore, we’re seeing strong interest from
   investors, who recognise the chance to align their investment strategies
   with sustainability objectives, diversify their portfolios, tap into
   growth sectors, and support a positive impact to conserve marine
   resources," says Daniel Lerup, CFO of Ørsted.

   The private placement bond was arranged by NatWest Markets N.V. and
   subscribed to by investors, including the main investor APG on behalf of
   ABP.

   Harmen van Wijnen, Chairman of ABP, APG’s Asset Management’s largest
   client, is excited about the prospect of contributing through the
   investment in Ørsted’s inaugural blue bond to the restoration and
   protection of marine life, saying: 

   “We’re proud to be the largest cornerstone investor in Ørsted’s inaugural
   blue bond. The introduction and broad application of innovative solutions
   to minimise the negative impacts of human activity at sea, including
   offshore wind farm construction, is crucial for achieving the Paris
   climate goals while at the same time combatting the biodiversity crisis.
   We strongly believe this investment is a great opportunity, both in terms
   of its positive ecological impact and its risk and return prospects for
   our beneficiaries.”

   Read more about the blue financing  6 here.

   Read the IFC Blue Finance Guidelines  7 here.

   For further information, please contact:

   Media Relations
   Thor R. Wilkens

   +45 99 55 44 07
    8 THRWI@orsted.com

    
   Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    9 IR@orsted.com

   About Ørsted
   The Ørsted vision is a world that runs entirely on green energy. Ørsted
   develops, constructs, and operates offshore and onshore wind farms, solar
   farms, energy storage facilities, renewable hydrogen and green fuels
   facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate
   Change A List as a global leader on climate action and was the first
   energy company in the world to have its science-based net-zero emissions
   target validated by the Science Based Targets initiative (SBTi).
   Headquartered in Denmark, Ørsted employs approx. 8,000 people. Ørsted's
   shares are listed on Nasdaq Copenhagen (Orsted). In 2022, the group's
   revenue was DKK 132.3 billion (EUR 17.8 billion). Visit  10 orsted.com or
   follow us on Facebook, LinkedIn, Instagram, and Twitter.

    

       Attachments

     •  11 Ørsted becomes world’s first energy company to issue blue
       bonds.pdf

   News Source: Ritzau

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DK0060094928
   Category Code: MSCL
   TIDM:          Orsted
   Sequence No.:  249653
   EQS News ID:   1652913


    
   End of Announcement EQS News Service

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