Orsted Announces Rights Issue to Strengthen Capital Structure and Fund Offshore Wind Projects

Strategic Insights -

Copenhagen-based Orsted A/S, a leading developer of offshore wind farms, has announced a rights issue to raise DKK 60 billion in gross proceeds. The move comes as a result of changes in the US offshore wind market, which have made it difficult for Orsted to complete the planned partial divestment of its Sunrise Wind project. The rights issue will be fully underwritten by Morgan Stanley & Co. International plc and will provide the company with the necessary capital to fund its 8.1 GW offshore wind construction portfolio over the next three years.

Key Takeaways:

  • Orsted's Board of Directors has decided to discontinue the process for the partial divestment of Sunrise Wind, citing the material adverse development in the US offshore wind market.
  • The company will instead raise new equity capital of DKK 60 billion in gross proceeds through a fully underwritten rights issue.
  • Existing shareholders will have a pre-emptive right to subscribe for their respective pro rata share of the capital increase in the rights issue.
  • The Danish state has undertaken to subscribe for its 50.1% pro rata share of the rights issue.
  • The proceeds from the rights issue will be used to strengthen Orsted's capital structure and provide financial flexibility for the company's investment program and business plan.
  • The company plans an approximately DKK 145 billion investment program in the period 2025-2027 relating to its current portfolio of construction projects.
  • Orsted maintains its target of an unlevered, fully loaded lifecycle IRR at 150-300 bps spread to WACC.
  • The company expects EBITDA (excluding new partnerships and cancellation fees) in excess of DKK 28 billion in 2026 and in excess of DKK 32 billion in 2027.
  • Orsted is committed to retaining its solid investment-grade credit rating.
  • The company plans to reinstate dividends for the financial year 2026.

Statistics:

  • DKK 60 billion: gross proceeds from the rights issue
  • 8.1 GW: capacity of Orsted's offshore wind construction portfolio
  • 2025-2027: period during which Orsted will deliver its offshore wind construction portfolio
  • DKK 145 billion: investment program in the period 2025-2027
  • 150-300 bps: target unlevered, fully loaded lifecycle IRR spread to WACC
  • DKK 28 billion: expected EBITDA (excluding new partnerships and cancellation fees) in 2026
  • DKK 32 billion: expected EBITDA (excluding new partnerships and cancellation fees) in 2027

Sources:

  • Orsted A/S (2025, company announcement no. 4/2025)