Denmark-based offshore wind power developer Ørsted has announced a DKr60bn ($9.3bn) rights issue to enhance its capital structure and offer financial flexibility, ensuring adequate capitalisation from 2025 to 2027.
The rights issue was announced following the recent significant adverse development in the US offshore wind market.
As a result, the company is unable to proceed with the planned partial divestment and the associated non-recourse project financing for its Sunrise Wind offshore project.
This situation is preventing the company from achieving the necessary enhancement of its capital structure to support its investment programme and business plan.
Ørsted now faces an incremental funding requirement of DKr40bn, as it needs to finance the construction of the entire project from its balance sheet without external financing.
The funds from this capital raise will support Ørsted’s financial position as it aims to deliver an 8.1GW construction portfolio by 2027.
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By GlobalDataExisting shareholders will have the pre-emptive right to subscribe for their respective pro rata share of the capital increase in the rights issue, thereby allowing them to maintain their current relative ownership stake.
The Danish state has committed to subscribing for its pro rata share of 50.1% in the rights issue, while Morgan Stanley stands as the underwriter, ensuring full subscription.
Ørsted chair of the board of directors Lene Skole stated: “Given the unprecedented regulatory development in the US, we have made a comprehensive assessment of all options, and Ørsted’s board of directors has concluded that the planned rights issue is the best path forward for the company and its stakeholders.
“The rights issue will strengthen Ørsted’s capital structure and provide financial robustness in the years 2025 through 2027, during which we’ll deliver on our 8.1GW offshore wind construction portfolio. This will be the foundation for generating long-term value from Ørsted’s platform and capabilities, for the benefit of our shareholders and other stakeholders.”
The rights issue is designed to cover additional funding needs and to allow more flexibility in partnership timings and divestments related to other offshore wind farms.
It enables Ørsted to maintain its competitive edge and pursue profitable investments in offshore wind farm markets within Europe and select markets in the Asia Pacific region.
Alongside this development, Ørsted is continuing with efforts towards farm-down processes at the Changhua 2 and Hornsea 3 offshore wind farms and is considering divesting its European onshore business.
This move can potentially raise more than DKr35bn in proceeds in 2025/26.
An extraordinary general meeting is scheduled for September 2025, where shareholders will vote on authorising this rights issue.
Ørsted group president and CEO Rasmus Errboe stated: “To deliver on our business plan and commitments in this environment, we’ve concluded that a rights issue is the best solution for Ørsted and our shareholders. The rights issue will reinforce our ability to realise the full value potential of our existing portfolio and capture future value-creating opportunities in offshore wind.
“At a critical time when we’re constructing 8.1GW of offshore wind capacity and making good progress across our entire construction portfolio, the rights issue will ensure a capital structure which supports a solid investment-grade credit rating and a more robust Ørsted.”
Lazard Frères and Morgan Stanley & Co International are serving as financial advisors to Ørsted and its board of directors.
